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Problem 1 (covering chapter 6): Air conditioning for a college dormitory will cost $1.8 million to install and $200,000 per year to operate. The system

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Problem 1 (covering chapter 6): Air conditioning for a college dormitory will cost $1.8 million to install and $200,000 per year to operate. The system should last 20 years. The real cost of capital is 5%, and the college pays no taxes. What is the equivalent annual cost

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