Question: Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.8 million to build and $200,000 per year
Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.8 million to build and $200,000 per year to maintain. Design 1B will cost $3.6 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (e) the breakeven ROR and (b) which design is preferred at an MARR of 30% per year. a) The breakeven ROR is 7%. b) At an MARR of 30% per year, design Coatoselo)3 is preferred
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