Expenditure for a new replacement of the existing pavement

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A section of roadway pavement costs $22,000 a year to maintain. What immediate expenditure for a new replacement of the existing pavement is justified if no maintenance will be required for the first 5 years, $7,500 per year for the next 10 years and $20,000 a year thereafter in 20 year period of interest? Assume money to cost 7%.

Reference no: EM13770413

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Expenditure for a new replacement of the existing pavement : A section of roadway pavement costs $22,000 a year to maintain. What immediate expenditure for a new replacement of the existing pavement is justified if no maintenance will be required for the first 5 years, $7,500 per year for the next 10 years and..

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