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#3. A natural gas pipeline currently has annual operating &maintenance costs of $40k.A new pipeline would initially cost $100k, but would reduce the annual O&M
#3. A natural gas pipeline currently has annual operating &maintenance costs of $40k.A new pipeline would initially cost $100k, but would reduce the annual O&M costs to$10k per year. Assuming an analysis period of 25years,no salvage value for either pipeline, and an interest rate of 6%,what's the difference in EUAC between the existing pipeline and the new pipeline,rounded to the nearest whole dollar amount?hat you're looking for the DIFFERENCE in the EUAC value of the two alternatives>
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