the Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. esign 2B will cost $3 million to install and $144,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per ear to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year nd a 20-year project period. he rate of return is %. Design (Click to select) is selected. (Click to select) 4R 2B
the Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. esign 2B will cost $3 million to install and $144,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per ear to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year nd a 20-year project period. he rate of return is %. Design (Click to select) is selected. (Click to select) 4R 2B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10.
Design 2B will cost $3 million to install and $144,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per
year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year
and a 20-year project period.
The rate of return is
%.
Design (Click to select) is selected.
(Click to select)
4R
2B
*******](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5aac2078-b8cd-4e98-8307-d4ab7a7c3f18%2F5450e64c-e8b0-4e6e-8409-8249b474a65f%2F2d7ijqvk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10.
Design 2B will cost $3 million to install and $144,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per
year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year
and a 20-year project period.
The rate of return is
%.
Design (Click to select) is selected.
(Click to select)
4R
2B
*******
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