6-40. Aone-mile section of a roadway in Florida has been washed out by heavy rainfall. The county is considering two options for rebuilding the road. Pertinent data are presented below.

Asphalt Concrete Capital investment $800,000 $1,100,000 Annual maintenance $2,000 $1,000 Life of roadway 10 years 18 years If the county’s MARR for this type of project is 5% per year, which replacement option should be chosen? State your assumptions. (6.5.1)