Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 62

Two different methods are under consideration for building a bypass road. Material C will cost $100,000 per mile and last for 10 years. Its annual maintenance cost will be $10,000 per year per mile. Material D will cost $30,000 per mile and last for 5 years. At an interest rate of 6% per year, the annual maintenance cost for material D that will make the two methods cost the same is closest to:
A) Less than $14,000
B) $14,270
C) $16,470
D) $19,510