#18 Given: An asphalt paving surfacing alternative is being evaluated using the present worth for future expenditures ov

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18 Given An Asphalt Paving Surfacing Alternative Is Being Evaluated Using The Present Worth For Future Expenditures Ov 1 (30.19 KiB) Viewed 26 times

#18 Given: An asphalt paving surfacing alternative is being evaluated using the present worth for future expenditures over an expected 40-year life. The initial cost of the asphalt surface is $700,000. It will require overlays at several intervals during the expected life. The cost of the future overlays will be $252,000 at 10 yr from construction, $332,000 at 17 yr. $420,000 at 23 yr, $530,000 at 29 yr, and $671,000 in 35 yr. The inflation rate is set at 4% annually for the analysis. Find: The present worth of the asphalt alternative is: (A) $1,551,000 (B) $1,672,000 (C) $1,711,000 (D) $1,824.000 Solution: