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Problem 1(30 points) Texas County is planning to construct a Dam some tens of miles away from the Houston Metropolis Recreation center to facilitate Power

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Problem 1(30 points) Texas County is planning to construct a Dam some tens of miles away from the Houston Metropolis Recreation center to facilitate Power Generation and fishing in the El Santos River Basin. The first cost for the Dam will amount to $8,500,000. Annual maintenance and repairs will amount to $20,000 for the first five years, to $25,000 for each year in the next seven years, and to $30,000 per year for the next six years. At the end of the 18th year, $35,000 is estimated to be deposited into Texas county account as tax credits earned for its environmental compliance in the construction and operation of the Dam. In addition a major overhaul costing $450,000 will be required at the end of the eighth year. Use an interest rate of 10% and : a) Determine the engineering economy symbols and their corresponding values. b) Construct the cash flow diagram c) Calculate the Capital Recovery for the project d) Determine the total Annual Worth for the Project e) What is the Present worth of this project Problem 1(30 points) Texas County is planning to construct a Dam some tens of miles away from the Houston Metropolis Recreation center to facilitate Power Generation and fishing in the El Santos River Basin. The first cost for the Dam will amount to $8,500,000. Annual maintenance and repairs will amount to $20,000 for the first five years, to $25,000 for each year in the next seven years, and to $30,000 per year for the next six years. At the end of the 18th year, $35,000 is estimated to be deposited into Texas county account as tax credits earned for its environmental compliance in the construction and operation of the Dam. In addition a major overhaul costing $450,000 will be required at the end of the eighth year. Use an interest rate of 10% and : a) Determine the engineering economy symbols and their corresponding values. b) Construct the cash flow diagram c) Calculate the Capital Recovery for the project d) Determine the total Annual Worth for the Project e) What is the Present worth of this project

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