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The government of Ghana is to construct a new 60km highway road from Accra to Winneba. The road is to be constructed just 200 meters

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The government of Ghana is to construct a new 60km highway road from Accra to Winneba. The road is to be constructed just 200 meters away from the coast line in order to ensure coast-to-coast ride that is devoid of any traffic. However, the government is in a dilemma as to go for a concrete or asphalt surface. Concrete will take 3 years to construct and will cost in total, $400 million at the end of the construction period. The concrete surface will last for 40 years, and have an estimated annual maintenance cost of $50,000 starting at the end of the sixth year. Asphalt, which is cheaper to construct, will take 2 years to construct and cost a total of $285 million at the end of the construction period, but it will last 10 years and cost $250,000 per year to maintain (including cost of resurfacing). The government of Ghana uses a discount rate of 8% per year for road projects. Which surface should the government opt for based on cost

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