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Please explain all 3. An oil company is planning to install a new 80 mm pipeline to connect storage tanks to a processing plant 1500
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3. An oil company is planning to install a new 80 mm pipeline to connect storage tanks to a processing plant 1500 m away. The connection will be needed for the foreseeable future. An annual interest rate of 8% is assumed, and annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred. initial cost $1500 service life 12 yr salvage value $200 annual maintenance $400 pump cost/hour $2.50 pump operation 600 hr/yr The capitalized cost of running and maintaining the 80 mm pipeline is most nearly (A) $15,000 (B) $20,000 (C) $24,000 (D) $27,000Step by Step Solution
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