Unformatted text preview: years of surface the roadbase would fail
and the entire road will have to be ripped up and rebuilt
at a cost of $455,000,000.
at IDOTS Dilemma
IDOTS Which type of highway should they build? What Kind of Problem does this look
like? All Cost Alternatives The Classic Problem
The We have an All Cost Alternatives
Problem with an Unequal Lives
Landmine 50 year concrete highway 20 year asphalt highway Standard Solution One Turn the long lived asset in for salvage How does one role up and resell a highway with
30 years of life left?
30 Standard Solution Two
Standard Replace the low cost alternative to match
the life of the long lived alternative
the To get a common life for 20 and 50 years we
need a 100 year road plan
need Is that realistic? The Unit Cost Solution
Pick an i...
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This note was uploaded on 02/02/2013 for the course ECON 361 taught by Professor Paulbradley during the Spring '13 term at SIU Carbondale.
- Spring '13