What is the maximum that should be spent for asphalt

Assignment Help Microeconomics
Reference no: EM132164926

Question: A road can be paved with either asphalt or concrete. Concrete costs $15,000/km and lasts 20 years. Assume the annual maintenance costs are $500 for concrete and $800 for asphalt per kilometer per year. Use an interest rate of 8% per year. Contributed by D. P. Loucks, Cornell University

(a) What is the maximum that should be spent for asphalt if it lasts only 10 years?

(b) Assume the asphalt road costs $7000 per kilometer. How long must it last to be the preferred alternative?

Reference no: EM132164926

Questions Cloud

Create a detailed powerpoint presentation on your proposal : The chief of police has told you that a philanthropist in town is considering giving a $100,000 grant to a worthy cause in the department.
What is the minimum number of days per year on average : Ithaca is considering a new $50,000 snowplow that will save the city $600 per day of use compared to the existing one. It should last 10 years and have.
Discuss the operations of correctional organizations : Write a 700- to 1,050-word argumentative essay that explains your selected position in regards to the privatization of prisons.
Relationship between individuals and communities : What are the individual roles and responsibilities to act ethically when considering technological impact on the environment
What is the maximum that should be spent for asphalt : A road can be paved with either asphalt or concrete. Concrete costs $15,000/km and lasts 20 years. Assume the annual maintenance costs are $500 for concrete.
How many miles must victoria drive in a year : Victoria is choosing between a standard Honda Civic for $17,350 or a hybrid Civic for $20,875. She calculates her annual cost of ownership including payments.
What is the importance of research within the confines : What is the importance of research within the confines of criminal justice?
How low could the resale value of the fiasco be : Tom Jackson is buying a new car. Alternative A is an American-built compact. It has an initial cost of $8900 and operating costs of 9c/km.
How do you round 14.851 to the nearest tenth : How do you round 14.851 to the nearest tenth

Reviews

Write a Review

Microeconomics Questions & Answers

  Small assignment hii need this small assignment completed

hi ltbrgt ltbrgti need this small assignment completed by today the latest. i am willing to pay a little bit more so

  Tariffs and quotas both raise price of foreign goods to

tariffs and quotas both raise the price of foreign goods to domestic consumers. what is the difference between the

  What is the average duration of unemployment

In a country with a labor force of 200 people, a different group of 10 people becomes unemployed each month but becomes employed once again a month later. No others outside these groups are unemployed.

  The growth of apple and how it became the tech leader

The growth of apple and how it became the tech leader it is todayThere are to be at least three sources cited using the MLA format. The paper should be 3 - 4 pages, double-spaced. You are expected to voice your opinion in the closing paragraph.COMPLE..

  What is the best practices frontier

What is the best practices frontier? How does this relate to competitive advantage? Explain why rent seeking competition tends to dissiapte rents-to drive them down so that there are no abnormal rents?

  How many payments will be required

A motorcycle is for sale for $26,000. The dealer is willing to sell it on the following terms: No down payment; pay $440 at the end of each of the first 4 month

  What can be said about the price of wine

With a week's work of labor, England can produce either 8 yards of cloth and 0 barrels of wine or 2 barrels of wine and 0 yards of cloth or in any combination lying on the line between these two points. What can be said about the price of wine at w..

  Explain problems related with using unemployment rate as

discuss the problems associated with using the unemployment rate as a gauge of labor market conditions. in your answer

  Describe how the results of a study can be statistically

Describe how the results of a study can be statistically significant but not meaningful. Examples are helpful!

  Do you think consumers should be concerned

Do you think consumers should be concerned? In your opinion, do the potential marketing benefits of CRM* databases exceed the potential downsides - or not?

  A reduction in personal income tax

What effect would each of the following have on aggregate demand or aggregate supply? Explain.

  What would happen if the market believed devaluation

Can this ?nancial in?ow be explained using our model? What would happen if the market believed that another devaluation would occur in the near future?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd