Problem
A city plans to upgrade its storm water management infrastructure by installing new pipes. The installation costs 2.1 million dollars and the annual maintenance cost is $14,000. Every 8 years, the system needs to be fully examined which requires a fixed management and material cost of $35,000 and a variable labor cost at the rate of $27/hr. 16 full time (working 8 hours per day) workers will be employed for 70 days for this task. If the infrastructure has a life time of 96 years and the city's interest rate is 5%,
i. What is the capitalized worth of the project (in millions)?
ii. What is the EUAC of the infrastructure (in million dollars)?