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5. The construction costs and annual maintenance costs of two alternatives for a canal are given below. Alternative A Alternative B $25,000,000 $50,000,000 Construction cost
5. The construction costs and annual maintenance costs of two alternatives for a canal are given below. Alternative A Alternative B $25,000,000 $50,000,000 Construction cost Annual maintenance costs 3,500,000 2,000,000 a. Which alternative would you recommend assuming a 7% interest and infinite life? b. What is the capitalized cost of maintenance for the recommended alternative
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