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(a) The government will build a tunnel for 100,000. It will have maintenance costs of 10,000 per year forever. A special account will be open

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(a) The government will build a tunnel for 100,000. It will have maintenance costs of 10,000 per year forever. A special account will be open to cover these costs tunnel. How much money must be put into this account today that will cover these costs forever, if the assumption of l = 6% per year is made? (b)Two Alternative Machines are being considered: Machine A costs 30,000 has revenue created of 10.000 per year, costs are 2,000 per year, salvage is o after 10 years. Machine B costs 50,000 has revenue stream of 4,000 per year expenses of 1000 per year and a salvage value of 12,000 at the end of 10 years. Using Annual worth as the criteria, analyze each choice showing the Annual worth of each

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