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A city is considering the development of a recreational complex. Two plans have been proposed, one of which is described as a ''low-maintenance'' facility because

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A city is considering the development of a recreational complex. Two plans have been proposed, one of which is described as a ''low-maintenance'' facility because of the use of heavier, more durable and weather-resistant materials. Costs for each plan are estimated as follows: Under Plan I, buildings will have to be refurbished at a cost of $50,000 every 15 years and facilities will have to be refurbished at a cost of $100,000 every 10 years. Under Plan II, buildings will be refurbished every 25 years and facilities every 20 years at a cost equal to the original cost of construction. Compare the equivalent uniform annual cost of perpetual service assuming that the periodic refurbishings make the complex ''as good as new.'' The city can borrow adequate funds for either plan at 9% interest

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