Two projects are being considered for construction. The first project has an initial cost of $$12$

Million with an annual maintenance cost of $$30,000.$ At the end of the $20$ year life of the asphalt

pavement, the process will be repeated for another $20$ years. The initial cost for the second cycle

will be $$9$ Million $($many of the materials can be reused$).$ Maintenance costs will remain the

same throughout the remaining life of the pavement. At the end of the $40$ years, $$2$ Million can

be recovered from the project. The second project involves a concrete pavement with an initial

cost of $$20$ Million and an annual maintenance cost of $$20,000$ for $40$ years. At the end of the

life of the concrete pavement, some of the materials can be recovered and recycled for a project

recovery of $$500,000.$ Using EUAC evaluation, show which project should be selected. Draw

the cash flow diagrams for each project. Use and interest rate of $6\%.$