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A tunnel to transport water through the Lubbock mountain range initially costs $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle
A tunnel to transport water through the Lubbock mountain range initially costs $1,000,000 and has expected maintenance costs that will occur in a 6-year cycle repeating over an infinite period as shown below. The annual savings from the tunnel are estimated to be $160,000 per year. The interest rate is 10%. Is this a good investment? Apply Annual Worth Analysis.
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