Selection 1: Portland Cement Concrete Pavement The initial construction cost = RM 3,600,000 Cost for sealing connection (in year 10, 20 & 30) = RM 123,000 Yearly scheduled maintenance = RM 54,000 The residual value of the pavement= RM 420,000

Selection 2: Hot-Mix Asphalt The initial construction cost = RM 2,700,000 Construction of Phase II (in year 10) = RM 1,050,000 Improvement of pavement (in year 15 & 30) = RM 870,000 Yearly scheduled maintenance = RM3,000 The residual value of the pavement =RM 840,000

Based on the above data, determine the best option for a road asset. The expected life span is 35 years for each selection. Given discount rate is 4% per annum.