Reference no: EM133082027

A new highway is to be constructed. Design A calls for a concrete pavement costing ?$90 per foot with a 12?-year ?life; two paved ditches costing ?$4 per foot? each; and four box culverts every? mile, each costing ?$10,000 and having a 12?-year life. Annual maintenance will cost $1,600 per? mile; the culverts must be cleaned every three years at a cost of $550 each per mile. Design B calls for a bituminous pavement costing $45 per foot with a 6?-year life; two sodded ditches costing ?$1.55 per foot? each; and two pipe culverts every? mile, each costing ?$2,150 and having a 6?-year life. The replacement culverts will cost $2,450each. Annual maintenance will cost $2,700 per? mile; the culverts must be cleaned yearly at a cost of $215 each per? mile; and the annual ditch maintenance will cost ?$1.45 per foot per ditch.

Compare the two designs on the basis of equivalent worth per mile for a 12?-year period. Find the most economical design on the basis of AW and PW if the MARR is 12?%per year.