The question was asked: A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years. Concrete shell would cost $100,000 and last for all 10 years. Vinyl would cost $75,000 but not guaranteed to last all 10 and has a 33% chance of breaking down. Repair of vinyl would cost $40,000 to extend life to the 10 year mark. Both options are acceptable, which minimizes their cost?
I am leaning toward the vinyl because 33% is not a large enough factor to pay $25,000 more, however if it did need repairs you would be paying $15,000 more than if you just went with concrete. Thoughts?
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