The Texas Department of Highways is trying to decide whether it should "hot-patch" a stretch of an existing highway or it could also rebuild it immediately. If the hot-patch method is chosen it would require the lowest cost for the material and requires maintenance of the shoulders, too. This method has the lowest useful lifetime. If the highway is rebuilt, it will give an indefinite life with appropriate reworking and maintenance. Both methods will result in the same possible capacity for cars. The Department uses a 6% annual interest rate. Hot-Patch (A) Rebuild (B) Initial Costs $260,000 $850,000 Operation and Maintenance $22,000 $33,000 Orerhaul every 6 years $55,000 Lifetime in years 5 a) (3 pts) Calculate the equal uniform annual worth of all alternatives. b) (pt) Describe the economic situation of this problem and decide which option is the best. Also name the decision criteria