Question #4 (15 Points): We can do maintenance for pavement using one of two methods: Method 1 is Micro- surfacing and Method 2 is regular street resurfacing. The annual cost of the micro-surfacing equipment (truck, tank, valves, etc.) is $109,000 per year and the variable cost of material is $2.75 per square yard. Alternatively, regular street resurfacing requires equipment that has a first cost of $225,000 with a 15-year life and no salvage value. The variable cost for regular resurfacing is $13 per square yard. At an interest rate of 8% per year: a) How many square yards per year must be resurfaced for the two methods to break even? b) If we need to resurface 9,000 yards per year, is it better to use Micro-surfacing or the regular resurfacing? Please justify in just one sentence (based on your answer of Part A)