Initial Construction Cost (P) 3" Asphalt overlay @ Yr 7 & Yr 22 New Asphalt Pavement @ Yr 15 Concrete Overlay@ Yr 15 Life Flexible Pavement $4,000,000 $1,200,000 (each overlay) $3,000,000 30 Rigid Pavement $5,000,000 $1,500,000 30 Given that the interest rate is 12%, what is the Present Worth of both the Flexible and the Rigid Pavements? $ (4,093,901) & $ (4,725,956) respectively and we should use the flexible pavement. $(5,090,908) & $ (5,264,031) respectively and we should use the flexible pavement. $ (5,190,079) & $ (5,274,044) respectively and we should use the flexible pavement. O $ (7,646,000) & $ (6,453,000) respectively and we should use the rigid pavement.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Hh.47.

 

Initial Construction Cost (P)
3" Asphalt overlay @ Yr 7 & Yr
22
New Asphalt Pavement @ Yr
15
Concrete Overlay@ Yr 15
Life
Flexible Pavement
$4,000,000
$1,200,000 (each
overlay)
$3,000,000
30
Rigid Pavement
$5,000,000
$1,500,000
30
Given that the interest rate is 12%, what is the Present Worth of both the
Flexible and the Rigid Pavements?
$ (4,093,901) & $ (4,725,956) respectively and we should use the flexible pavement.
$(5,090,908) & $ (5,264,031) respectively and we should use the flexible pavement.
$ (5,190,079) & $ (5,274,044) respectively and we should use the flexible pavement.
O $ (7,646,000) & $ (6,453,000) respectively and we should use the rigid pavement.
Transcribed Image Text:Initial Construction Cost (P) 3" Asphalt overlay @ Yr 7 & Yr 22 New Asphalt Pavement @ Yr 15 Concrete Overlay@ Yr 15 Life Flexible Pavement $4,000,000 $1,200,000 (each overlay) $3,000,000 30 Rigid Pavement $5,000,000 $1,500,000 30 Given that the interest rate is 12%, what is the Present Worth of both the Flexible and the Rigid Pavements? $ (4,093,901) & $ (4,725,956) respectively and we should use the flexible pavement. $(5,090,908) & $ (5,264,031) respectively and we should use the flexible pavement. $ (5,190,079) & $ (5,274,044) respectively and we should use the flexible pavement. O $ (7,646,000) & $ (6,453,000) respectively and we should use the rigid pavement.
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