Question #7: A contractor has been awarded the contract to construct a 6-mile long tunnel in the mountains. During the 5-year construction period, the contractor will need water from a nearby stream. She will construct a pipeline to carry the water to the main construction yard. An analysis of costs for the various pipe size is as follows: Installed cost of pipeline and pump Cost per hour of pumping (7%.5) 2 $22,000 $1.20 2006 X 1.2 -Pipe Sizes (in) 3 $23,000 $0.65 4 $25,000 $0.50 5 $30,000 $0.40