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TDOT Example 2 (Non-Annual Series)

TDOT Example 2 (Non-Annual Series) - the top two inches of...

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TDOT Example 2 (Non-Annual Series) TDOT needs to build a bypass route around Clarksville, TN and they have decided to use an asphalt pavement. The asphalt pavement will cost $3,000,000 per mile to construct and $75,000 per mile for annual maintenance. Every 12 years starting in Year 15
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Unformatted text preview: , the top two inches of the asphalt will have to be milled off and replaced at a cost of $1,000,000 per mile. Assuming a design life of 36 years, what is the present value of the pavement’s life-cycle costs? Assume TDOT’s cost of capital is 3% per year....
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