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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 of the tunnel. How much money must be put into this account today that will cover these costs forever, if the assumption of I = 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 value is 0 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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