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Develop a choice table for interest rates

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Using the current specifications, resurfacing a road will cost $1.5M initially, need $120K in annual maintenance, and need to be resurfaced every 10 years. A proposed new specification is expected to be more resistant to wear. The resurfacing cost will be $2.1M with $90K in annual maintenance and resurfacing every 15 years.

a. Develop a choice table for interest rates from 0% to 25%.

b. If the highway department's interest rate is 6%, which specification is preferred

Reference no: EM132587613

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