Q1) A new highway is being evaluated at an interest rate of i= 5.5%. Use capitalized cost to determine which plan is most suitable. Initial Cost Annual maintenance periodic major maintenance periodic major maintenance done every in years A $18M 342,000 1.6 M 12 B $28M 238,000 1.2M 18

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Q1) A new highway is being evaluated at an interest rate of i= 5.5%. Use capitalized
cost to determine which plan is most suitable.
Initial Cost
Annual maintenance
periodic major
maintenance
periodic major
maintenance done every
in years
A
$18M
342,000
1.6 M
12
B
$28M
238,000
1.2M
18
Transcribed Image Text:Q1) A new highway is being evaluated at an interest rate of i= 5.5%. Use capitalized cost to determine which plan is most suitable. Initial Cost Annual maintenance periodic major maintenance periodic major maintenance done every in years A $18M 342,000 1.6 M 12 B $28M 238,000 1.2M 18
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