through the town . They can either resurface the road every 10 years , or resurface every 15 years but with higher maintenance costs . The municipality uses a 5 % interest rate for their appraisals to include in their applications for the Municipal Infrastructure Grant ( MIG ) . The funding will be available such that construction can be completed by the end of the current financial year . They have determined the following data , but they need you to carry out an economic appraisal as the basis from which to advise them : 10 - year resurfacing cycle Resurfacing : R15 000 000 Maintenance schedule : Year 1-5 : zero Year 6 : R300 000 Year 7 : R600 000 Year 8-10 : R800 000 15 Year resurfacing cycle : Resurfacing : R15 000 000 Maintenance schedule : Year 1-5 : zero Year 6 : R300 000 Year 7 : R600 000 Year 8-10 : R800 000 Year 11-15 : R1 000 00
A municipality is investigating the maintenance and refurbishment of the main road through the town . They can either resurface the road every 10 years , or resurface every 15 years but with higher maintenance costs . The municipality uses a 5 % interest rate for their appraisals to include in their applications for the Municipal Infrastructure Grant ( MIG ) . The funding will be available such that construction can be completed by the end of the current financial year . They have determined the following data , but they need you to carry out an economic appraisal as the basis from which to advise them :
10 - year resurfacing cycle Resurfacing : R15 000 000 Maintenance schedule :
Year 1-5 : zero
Year 6 : R300 000
Year 7 : R600 000
Year 8-10 : R800 000
15 Year resurfacing cycle : Resurfacing : R15 000 000 Maintenance schedule :
Year 1-5 : zero
Year 6 : R300 000
Year 7 : R600 000
Year 8-10 : R800 000
Year 11-15 : R1 000 000
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