A rural subdivision has several miles of access road that needs a new surface treatment. Alternative 1 provides a gravel base and pavement with an initial cost of $500,000 that will last for 15 years...

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Extracted text: A rural subdivision has several miles of access road that needs a new surface treatment. Alternative 1 provides a gravel base and pavement with an initial cost of $500,000 that will last for 15 years and has an annual upkeep cost of $100 per mile. Alternative 2 enhances the gravel base now at a cost of $50.000 and immediately (i.e., time o) coats the surface with a durable hot oil mix, which costs $130 per barrel applied. A barrel covers o.05 mile. Annual reapplication of the mix is required. If the discount rate is 6% per year, determine the number of miles at which the two alternatives break even.