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4. The total present worth of constructing an asphalt highway is calculated as 1 million dollars....

4. The total present worth of constructing an asphalt highway is calculated as 1 million dollars. The initial capital cost is $500,000 and the annual operating maintenance cost is $35,000. An asphalt overlay costing $250,000 will be needed in year 10 of the 20-year design life. Did the analysis assume any future salvage value for the pavement? Assume an int rate of 6%.

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