Compute the eac for a one hundred-year horizon


Problem

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.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Compute the eac for a one hundred-year horizon
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