1. A new highway is to be constructed. Asphalt paving will be used. The asphalt will...

 

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1. A new highway is to be constructed. Asphalt paving will be used. The asphalt will cost $180/ft, including the material and paving operation. Due to heavy usage, the asphalt is expected to last 5 years before requiring resurfacing. The cost of resurfacing will be the same price/ft in the future. Paved ditches must be installed on each side of the highway and will cost $52.50/ft to install; ditches will have to be repaved in 15 years at a cost equal to the initial cost. Four pipe culverts are required/mile; each costs $28,000 and will last 10 years; replacements will cost $10,000, each, forever. Annual maintenance of the highway will cost $9,000/mi. Cleaning each culvert will cost $1,250/yr. Cleaning and maintaining each ditch will cost $3.75/ft every year. Important reminder: There are four culverts each mile. Two ditches are necessary (there is one on each side of the roadway). Using a 3.0% MARR, what is the capitalized cost (CC) per mile for the highway? 1. A new highway is to be constructed. Asphalt paving will be used. The asphalt will cost $180/ft, including the material and paving operation. Due to heavy usage, the asphalt is expected to last 5 years before requiring resurfacing. The cost of resurfacing will be the same price/ft in the future. Paved ditches must be installed on each side of the highway and will cost $52.50/ft to install; ditches will have to be repaved in 15 years at a cost equal to the initial cost. Four pipe culverts are required/mile; each costs $28,000 and will last 10 years; replacements will cost $10,000, each, forever. Annual maintenance of the highway will cost $9,000/mi. Cleaning each culvert will cost $1,250/yr. Cleaning and maintaining each ditch will cost $3.75/ft every year. Important reminder: There are four culverts each mile. Two ditches are necessary (there is one on each side of the roadway). Using a 3.0% MARR, what is the capitalized cost (CC) per mile for the highway?

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