Problem
Mytown's street department repaves a street every 8 years. Potholes cost $12,000 per mile beginning at the end of Year 3 after construction or repaving. The cost to fix potholes generally increases by $12,000 each year. Repaving costs are $180,000 per mile. Mytown uses an interest rate of 6%. What is the EAC for Mytown's policy? What is the EAC for the optimal policy? What is the optimal policy?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.