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Two bids have been received to repave a commercial parking lot. Proposal 1 includes new rubs grading, and paving at an initial cost of $250.000.
Two bids have been received to repave a commercial parking lot. Proposal 1 includes new rubs grading, and paving at an initial cost of $250.000. The life of the parking lot surface abstracted in this manner is expected to be 4 years with annual costs for maintenance and painting of pavement marking at $3000. proposal 2 offers pavement of a significantly goer quality with an expected life of 8 years. The annual maintenance cost will be eligible for the pavement, but the markings will have to be repainted every two years at a of $3000. Markings are not pointed the last year of its expected life under proposal 2. the company's current MARR is 12% per year, how much can it afford to spend on arousal 2 initially so the two breakeven
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