Calculate the maximum investment that can be justified for the new surface, with annual interest at 4%

Formulas used in Engineering Economics analysis: F P( +) A F 1i)-1 i(1 i)n (1 i)1 A P Where: . P is the Present Value of money .F is the Future Value of money . A is Annual (of frequent) installments of money i is the interest rate (in decimal). E.g. used 0.03 not 3 for 3% annual interest n is number of years or number of compounding applications per analysis period 1. Annual maintenance costs for a particular section of highway pavement are $3,000. The placement of a new surface would reduce the annual maintenance cost to $750 per year for the first 5 years and to $1,000 per yearfor the next five years. The annual maintenance after 10 years would again be $3,000. If maintenance costs are the only saving, calculate the maximum