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Determine the breakeven ror

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Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $21 million to build and $275.000 per year to maintain. Design 18 will cost $3.8 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent.

Question 1: Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 35% per year.

Reference no: EM132647396

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