Well first, if you can get granite slab for $40 a square foot, then buy it.
It starts at $50 here.
You can save some money by installing granite tile.
Remove existing formica. Install 3/4" plywood. Install 1/4" DensShield water-resistant backerboard over a bed of troweled thinset and screw to manufacturers specifications. Then tile.
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Matt
Cupan Custom Tile and Paint
Charlotte, NC
[URL="http://www.cupantileandpaint.com"]tile contractor[/URL]
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