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thank you. vii) A road needs to be repaired. It can be paved with either asphalt or concrete. Concrete costs $150,000 per km and lasts

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thank you.

vii) A road needs to be repaired. It can be paved with either asphalt or concrete. Concrete costs $150,000 per km and lasts 20 years (but maintenance costs are extra). What is the breakeven cost for asphalt (which only lasts 10 years and then has to be replaced)? Annual costs of maintenance for both types of road are $5000/km; and MARR is 12%. a) $75,000. b) $83,000. c) $113,500. d) $114,700. e) None of the above

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