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Finance / Engineering please use hand written calculations 6. Using Present Worth of Costs as your evaluation criterion A levee construction is proposed. For levee
Finance / Engineering
6. Using "Present Worth of Costs as your evaluation criterion A levee construction is proposed. For levee design type A: initial cost = $50 million, average annual maintenance cost = $0.25 million, salvage value = $8 million. For levee design type B: initial cost = $30 million, average annual maintenance cost = $0.75 million, salvage value = $2 million. Both types have a useful life of 15 years. Which alternative should be selected? Assume 7% interest rate please use hand written calculations
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