Question: Using capitalized cost determine which type of road surface is preferred on a particular section of highway Use 12% interest rate. A B Initial cost

Using capitalized cost determine which type of road surface is preferred on a particular section of highway Use 12% interest rate.

A B Initial cost $700,000 $500,000 Annual maintenance Periodic resurfacing 25,000 35,000 350,000 450,000 Resurfacing int

A B Initial cost $700,000 $500,000 Annual maintenance Periodic resurfacing 25,000 35,000 350,000 450,000 Resurfacing interval 15 years 10 years

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