A new highway is to be constructed. Design A calls for a concrete pavement costing P3600 per foot with a 20-year life; two paved ditches costing P120 per foot each; and three box culverts every mile,...

Extracted text: A new highway is to be constructed. Design A calls for a concrete pavement costing P3600 per foot with a 20-year life; two paved ditches costing P120 per foot each; and three box culverts every mile, each costing P360,000 and having a 20-year life. Annual maintenance will cost P72,000 per mile; the culverts must be cleaned every five years at a cost of P18,000 each per mile. Design B calls for a bituminous pavement costing P1800 per foot with a 10-year life; two sodded ditches costing P60 per foot each; and three pipe culverts every mile, each costing P90,000 and having a 10-year life. The replacement culverts will cost P96,000 each. Annual maintenance will cost P108,000 per mile; the culverts must be cleaned yearly at a cost of P9000 each per mile; and the annual ditch maintenance will cost P60 per foot per ditch. Compare the two designs on the basis of equivalent worth per mile for a 1/1 20-year period. Find the most economical design on the basis of AW and PW if the MARR is 6% pe. 2.