Examine what is the eac for the tunnel

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Reference no: EM132160363

Question: A tunnel cost $280M. Every 10 years, it is repaved at a cost of $12M. Halfway between the repaving's, it is resurfaced at a cost of $7M. It is rewired every 20 years at a cost of $15M. With proper maintenance ($20M per year), the tunnel will last forever. If i = 5%, what is the EAC for the tunnel?

Reference no: EM132160363

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