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3. Costs for construction of a section of rural highway are shown below. Use a 20-year analysis period with a 12% annual interest rate. Initial
3. Costs for construction of a section of rural highway are shown below. Use a 20-year analysis period with a 12% annual interest rate. Initial Cost: |$7,000,000 Annual Maintenance for the first 10 years: $45,000 Major Maintenance in the 10th year S2 Salvage Value: S3,000,000 Major maintenance will not be performed in the 20th year. Please answer the following three items: (a) Draw a Cash Flow Diagram that accurately represents the analysis period: (b) Present Value (P): (c) Equivalent Uniform Annual Cost (EUAC or A)
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