Please help before 9 am

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 000 000 608 APPENDIX C: COMPOUND INTEREST TABLES 5% 5% Sinking Fund Factor Find A Given F A/F n Present Worth Factor Find P Given A P/A 0.952 1.859 2.723 3.546 4.329 n 1 2 3 4 5 1 2 3 4 5 5.076 8.142 5.786 6 7 8 9 10 6 7 8 9 10 11 12 13 14 15 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11 12 13 14 15 16 17 18 19 20 1.0000 .4878 3172 .2320 .1810 .1470 .1228 .1047 .0907 .0795 .0704 .0628 .0565 .0510 .0463 .0423 .0387 .0355 .0327 .0302 .0280 ,0260 0241 .0225 .0210 .0196 .0183 .0171 .0160 .0151 .0141 .0133 .0125 .0118 .0111 11.690 Compound Interest Factors Uniform Payment Series Capital Compound Recovery Amount Factor Factor Find A Find F Given P Given A A/P F/A 1.0500 1.000 .5378 2.050 .3672 3.152 .2820 4.310 .2310 5.526 .1970 6.802 .1728 .1547 9.549 .1407 11.027 .1295 12.578 .1204 14.207 .1128 15.917 .1065 17.713 .1010 19.599 .0963 21.579 .0923 23.657 .0887 25.840 .0855 28.132 .0827 30.539 .0802 33.066 .0780 35.719 .0760 38.505 .0741 41.430 .0725 44.502 .0710 47.727 .0696 51.113 .0683 54.669 .0671 58.402 .0660 62.323 .0651 66.439 .0641 70.761 .0633 75.299 .0625 80.063 .0618 85.067 .0611 90.320 .0583 120.799 .0563 159.699 .0548 209.347 .0537 272.711 .0528 353.582 .0522 456.795 .0517 588.525 .0513 756.649 .0510 971.222 .0508 1 245.1 .0506 1594.6 .0505 2040.7 .0504 2610.0 16 17 18 19 20 Single Payment Compound Present Amount Worth Factor Factor Find F Find P Given P Given F F/P P/F 1.050 9524 1.102 9070 1.158 .8638 1.216 .8227 1.276 .7835 1.340 .7462 1.407 .7107 1.477 .6768 1.551 .6446 1.629 .6139 1.710 5847 1.796 .5568 1.886 .5303 1.980 .5051 2.079 .4810 2.183 4581 2.292 4363 2.407 .4155 2.527 .3957 2.653 .3769 2.786 .3589 2.925 .3419 3.072 .3256 3.225 .3101 3.386 .2953 3.556 .2812 3.733 .2678 3.920 .2551 4.116 .2429 4.322 2314 4.538 .2204 4.765 2099 5.003 .1999 5.253 .1904 5.516 1813 7.040 .1420 8.985 .1113 11.467 .0872 14.636 .0683 18.679 0535 23.840 .0419 30.426 .0329 38.832 .0258 49.561 .0202 63.254 .0158 80.730 .0124 103.034 .00971 131.500 .00760 12.085 12.462 21 22 23 24 25 Arithmetic Gradient Gradient Gradient Uniform Present Series Worth Find A Find P Given G Given G A/G P/G 0 0 0.488 0.907 0.967 2.635 1.439 5.103 1.902 8.237 2.358 11.968 2.805 16.232 3.244 20.970 3.676 26.127 4.099 31.652 4.514 37.499 4.922 43.624 5.321 49.988 5.713 56.553 6.097 63.288 6.474 70.159 6.842 77.140 7.203 84.204 7.557 91.327 7.903 98.488 8.242 105.667 8.573 112.846 8.897 120.008 9.214 127.140 9.524 134.227 9.827 141.258 10.122 148.222 10.411 155.110 10.694 161.912 10.969 168.622 11.238 175.233 11.501 181.739 11.757 188.135 12.006 194.416 12.250 200.580 13.377 229.545 14.364 255.314 15.223 277.914 15.966 297.510 16.606 314.343 17.154 328.691 17.621 340.841 18.018 351.072 18.353 359.646 18.635 366.800 18.871 372.749 19.069 377.677 19.234 381.749 12.821 13.163 13.489 13.799 14.094 14.375 14.643 14.898 15.141 15.372 15.593 15.803 26 27 28 29 30 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 16.003 31 32 33 34 35 40 45 50 55 60 65 70 75 80 85 90 95 100 .00828 .00626 .00478 .00367 .00283 40 45 50 55 60 .00219 .00170 .00132 .00103 .00080 .00063 .00049 .00038 16.193 16.374 17.159 17.774 18.256 18.633 18.929 19.161 19.343 19.485 19.596 19.684 19.752 19.806 19.848 65 70 75 80 85 90 95 100