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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F017a79a2-e9cc-4282-96bc-91c5b4221e03%2F4b4869c0-e8f7-4a30-a5ac-f3dc74d86388%2Fo720mb5_processed.jpeg&w=3840&q=75)
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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