1.RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel for an initial cost of $45,000 and should last for 15 years. Maintenance will cost $1,000 per year. Another option would be to use corrosion resistant steel, which will last for 15 years, with annual maintenance cost of $100. In 15 years there would be no salvage value for either bridge. RR pays combined federal and state taxes at the 40% marginal rate and uses straight-line depreciation. If the after tax MARR is 12%, what is the maximum amount that should be spent on the corrosion-resistant tunnel? Enter your answer as follow: 123456.78

2. A material handling system was purchased 3 years ago for $123816. Two years ago it required substantial upgrading at a cost of $16340. It once again is requiring an upgrading cost of $24254. Alternately, a new system can be purchased today at a cost of $200688, with a salvage value of $19120. The existing machine could be sold today for $49996. In an economic replacement analysis, what first cost should be assigned to the existing system?

Enter your answer as follow: 123456.78

3. A corporate expects to receive $37175 each year for 15 years if a particular project is undertaken. There will be an initial investment of $113664. The expenses associated with the project are expected to be $7576 per year. Assume straight-line depreciation, a 15-year useful life, and no salvage value. Use a combined state and federal 48% marginal tax rate, MARR of 8%, determine the project's after-tax net present worth.

Enter your answer as follow: 123456.78