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Each of two alternatives (X or Y) will last 18 years, and the interest rate is 7%. Alternative X has Construction Cost of $500,000, and

Each of two alternatives (X or Y) will last 18 years, and the interest rate is 7%. Alternative X has Construction Cost of $500,000, and annual maintenance cost of $25,000. Alternative Y has Construction Cost of $640,000, and annual maintenance cost of $10,000. Use present worth analysis to determine which alternative should be selected.

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