(Answered) Two roadway designs are under consideration for access to a

Management Studies

Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $2.8 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 (a) the breakeven ROR and (b) which design is preferred at an MARR of 15% per year.

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