With the current specifications a new road will cost 15 m, Ask an Expert

Economics

With the current specifications, a new road will cost $1.5 M initially, need $120K in annual maintenance and need to be resurfaced every 10 years, cost = $1.1M. A proposed new spec will cost $2.1M, cost $90K annually in maintenance and require resurfacing every 15 years, cost = $1.3M. Alternative "current" is preferred when ? % ≤ MARR ≤ ? %. Use capitalized cost.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91829333

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