Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.5 million to build and $125,000 per year to maintain. Design 1B will cost $3.2 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 5% per year.

The breakeven ROR is____ %.

b) At an MARR of 5% per year, design 1A Correct is preferred.