What is the eac for the optimal policy

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Reference no: EM13156878

Mytown's street department repaves a street every 8 years. Potholes cost $12,000 per mile beginning at the end of year 3 after construction or repaving. The cost to fix potholes generally increases by $12,000 each year. Repaving cost are $180,000 per mile. Mytown uses an interest rate of 6%. What is the EAC for Mytown's policy? What is the EAC for the optimal policy? What is the optimal policy?

Reference no: EM13156878

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