Two different methods are under consideration for building a bypass road. Material C will cost $100,000 per

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Two different methods are under consideration for building a bypass road. Material C will cost $100,000 per mile and last for 10 years. Its annual maintenance cost will be $10,000 per year per mile. Material D will cost $30,000 per mile and last for 5 years. At an interest rate of 6% per year, the annual maintenance cost for material D that will make the two methods cost the same is closest to:
(a) Less than $14,000
(b) $14,270
(c) $16,470
(d) $19,510

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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