the Texas DOT is comparing two alternative payment treatment with the following characteristic For each alternative, estimate the probability to have annualized constructioncost lower than $20k/year.

The Texas DOT is comparing two alternative pavement treatments with the following characteristics. For each alternative. estimate the probability to have an annualized construction cost lower than $20k/year. As a result, which alternative would you recommend? The interest rate is 5% per year compounded annually and inflation runs at 2.4% per year. Treatment Construction cost/lane-mile $130k $220k Overlay Reconstruction 6 (15%) 11 (20%) Service Life Years (probability) 7 (25%) 8 (35%) 9 (15%) 12 (25%) 13 (35%) 14 (1296) 10 (10%) 15 (8%)