Using the current specifications resurfacing a road will, Ask an Expert

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Using the current specifications, resurfacing a road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years. A proposed new specification is expected to be more resistant to wear. The resurfacing cost will be $2.1M with $90K in annual maintenance and resurfacing every 15 years.

Develop a choice table for interest rates from 0% to 25%.

If the highway department's interest rate is which specification is preferred?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91796729

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