B.B. Rodriguez must build a trail to gain his access to his castle. The path could be fabricated from crushed granite for an initial cost of $24,000 and should last for 8 years. Maintenance will cost $2,400 per year.

Another option would be to use pavers, which will last for 8 years, with annual maintenance cost of $750. In 8 years there would be no salvage value for either path. Rodriguez pays combined federal and state taxes at the 40% effective rate and uses straight-line depreciation. If the after-tax MARR is 10%, what is the maximum initial cost that should be spent on the pavers?

a)Select the appropriate representation of the ATCF of the crushed granite trail in every year past year 0.

-960 + (9600/8)

-2400 + 960 + (9600/8)

-2400 + 960

-2400 3000

b)Select the appropriate equation to represent the NPW of the crushed granite trail.

24000 240 (P/A, 10%, 8)

-24000 + 240 (P/A, 10%, 8)

-2160(P/A, 10%, 8)

2160(P/A, 10%, 8)

c)Provide the after-tax NPW of the crushed granite trail.

d) Select the appropriate representation of the ATCF of the paver trail in every year past year 0.

-750 (-300)

-750 (-300) (-1/20)*(Initial Cost)

-2400 (Initial Cost)/8

-300 + 1/20*(Initial Cost)

e)Provide the maximum initial cost that should be spent on the paver trail.

f)Provide a statement to specify how much the paver trail should cost.