Highway department needs to repave section of roadway

Assignment Help Business Economics

Reference no: EM131160292

A municipal highway department needs to repave a section of roadway. Concrete would cost $500,000, and lasts for 20 years. Asphalt can also be used, but it only lasts for 15 years, and requires resealing after 8 years at a cost of $50,000. At what cost of asphalt would it make sense to pave with that material? Use i = 6%.

Reference no: EM131160292

Questions Cloud

Current account surplus : Suppose that in 2013, the U.S. runs a current account surplus of $514 billion. If other factors did not affect the U.S. balance of international indebtedness, it would decrease by $514 billion during 2013. Suppose that in 2013, the U.S. next external..

Can he return the extra eight reams : Marty ordered 100 reams of colored construction paper for his after-school art workshops. Bulk construction paper is shipped in 12 ream bundles (the industry standard). The shipment comes and Marty opens the nine bundles (108 reams). Can he return th..

About between long distance and local telephone service : Do you think there are economies of scope between long distance and local telephone service? How about between local telephone service and long distance service? What difference do economies of scope make for the optimal regulatory policy?

What is the zero profit theorem : What is the Zero profit Theorem? Explain briefly. Suppose a grocer in a growing neighborhood comes to enjoy large eco nomic profit by virtue of his special location, which is not available to competing stores. If no new firm can locate nearby, it wou..

Highway department needs to repave section of roadway : A municipal highway department needs to repave a section of roadway. Concrete would cost $500,000, and lasts for 20 years. Asphalt can also be used, but it only lasts for 15 years, and requires resealing after 8 years at a cost of $50,000. At what co..

Describe the main purpose of the hajj in the muslim faith : Describe the main purpose of the Hajj in the Muslim faith, and identify two (2) specific aspects of the Hajj that you find fascinating or significant. Next, explain the association between Muhammad and the area of the Dome of the Rock in Jerusalem. L..

Cartel agreements tend to break down : Cartel agreements tend to break down: Dominant price leadership tends to break down:

Describe both distributive-procedural organizational justics : Describe both distributive and procedural organizational justice and how they differ. How may one’s level of collectivism influence his/her interpretation of a situation as reflecting distributive justice? How may one’s level of power distance influe..

What is the profit-maximizing level of demand : A waterpark is the only one in a small town. Based on past summer season’s ticket sales, they estimate that the relationship between the monthly demand D (in persons) and price of a ticket p (in USD/person) in the town is described by p=44-0.0005 D. ..

User Account

All Pages