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Question 5: The Texas Department of Transportation (TxDoT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost
Question 5: The Texas Department of Transportation (TxDoT) is considering two designs for crash barriers along a reconstructed portion of I-10. Design 2B will cost $3.5 million to install and $160,000 per year to maintain. Design 4R will cost $4.9 million to install and $80,000 per year to maintain. Calculate the rate of return and determine (using incremental ROR) which design is preferred, ifTxDoT uses a MARR of 8% per year and a 20-yea r project period
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