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A tunnel cost $280M Every 10 years it is repaved at a cost of $12M Halfway between the repavings it is resurfaced at a cost of $7M It is rewired every 20 years at a cost of $15M With proper main

A tunnel cost $280M. Every 10 years, it is repaved at a cost of $12M. Halfway between the repavings, it is resurfaced at a cost of $7M. It is rewired every 20 years at a cost of $15M. With proper maintenance ($20M per year), the tunnel will last forever. If i = 5%, what is the EAC for the tunnel?

 

Apr 23 2020 View more View Less

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