The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. Design 28 will cost $3 million to install and $135,000 per year to maintain. Design 4R will cost $3.7 million to install and $70,000 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 4R %. ✓is selected.

The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. Design 28 will cost $3 million to install and $135,000 per year to maintain. Design 4R will cost $3.7 million to install and $70,000 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 4R %. ✓is selected.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

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 $135,000 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) 28 4R %. 2B
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