A proposed tunnel has a first cost of 800m annual om costs


A proposed tunnel has a first cost of $800M, annual O&M costs of $14M, a salvage value in year 100 of $225M, repaving every 10 years at $45M, and repainting lines and mending railings every 5 years $1.2M (note that this cost is included in the repaving cost for the years where repaving is done). Find the EAC (i = 5%) for a 100-year horizon.

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Business Economics: A proposed tunnel has a first cost of 800m annual om costs
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