Problem

A state highway de partment is planning the construcrion of a 50 mile. four-la nelollroad....

A state highway de partment is planning the construcrion of a 50 mile. four-la nelollroad. It estima tes that the construction cos t (t = 0) will be $200.000,000 and annual mainten ance costs will be $ 1.000.000 per year for ever. In add ition. every 10 years ill perpe tui ty, a major resurfacing will have to be ca rried out at u cos t of $ 10.000.000. It is estimated that 6.000.000 cars and 6000.000 trucks will usc ther and each vear and it is decid ed that the toll charged to a truck will be four times that of u car. In te rest ra te is 7%.

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