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 wear 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) 2B 4R
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 wear 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) 2B 4R
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a154062-7616-4f8a-90c1-128b6b760772%2Fe70a0054-4044-429c-9252-507d1d607eb4%2Fj6bhw8_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 $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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