ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10.
Design 2B will cost $3 million to install and $135,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per
year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year
and a 20-year project period.
The rate of return is
Design (Click to select) is selected.
(Click to select)
28 4R
%.
2B
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Transcribed Image Text:The Texas Department of Transportation (TxDOT) is considering two designs for crash barriers along a reconstructed portion of 1-10. Design 2B will cost $3 million to install and $135,000 per year to maintain. Design 4R will cost $3.7 million to install and $55,000 per year to maintain. Determine which design should be selected based on a rate of return analysis if TxDOT uses a MARR of 6% per year and a 20-year project period. The rate of return is Design (Click to select) is selected. (Click to select) 28 4R %. 2B
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