Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 27

Rubber sidewalks made from ground up tires are said to be environmentally friendly and easier on people's knees. Rubbersidewalks, Inc. of Gardena, California, manufactures the small rubberized squares that are being installed where tree roots, freezing weather, and snow removal have required sidewalk replacement or major repairs every 3 years. The District of Columbia spent $60,000 for a rubber sidewalk to replace broken concrete in a residential neighborhood lined with towering willow oaks. If a concrete sidewalk costs $28,000 and lasts only 3 years versus a 9-year life for the rubber sidewalks, what rate of return does this represent