If the road should be repaired and when.
Answer to Problem 32P
Yes, the road should be repaired
Explanation of Solution
Given:
The MARR is
Concept used:
Net present worth is the difference between the net present cash flow and the net present cash out flow.
Calculation:
Write the expression to calculate the net present worth for year
Here, the initial cost is
Substitute
Write the expression to calculate the net present worth for year
Substitute
Convert the net present worth for year
Substitute
Write the expression to calculate the net present worth for year
Substitute
Convert the net present worth for year
Substitute
Write the expression to calculate the net present worth for year
Substitute
Convert the net present worth for year
Substitute
Conclusion:
The net present worth for now is in negative hence, the road should be repaired, Since year
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Chapter 16 Solutions
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