A section of state highway needs repair. At present,the

Chapter , Problem 16-32

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A section of state highway needs repair. At present,the traffic volume is low and few motorists wouldbenefit. However, traffic is expected to increase,with resulting increased motorist benefits. Therepair work will produce benefits for 10 years afterit is completed.Should the road be repaired and, if so, whenshould the work be done? Use a 15% MARR.(Costs in 1000s)Repair Repairin Repairin Repair inYear Now 2 Years 4 Years 5 Years0$15015210$1503202043030$15054040 40$15065050 50 5075050 50 5085050 50 5095050 50 5010 50 50 50 5011050505012050505013 0 0 50 5014 0 0 50 5015 0 0 0 50

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