Question: A small town is planning to install a new grey water treatment plant with a service life of 20 years. Its cost characteristics are

A small town is planning to install a new grey water treatment

A small town is planning to install a new grey water treatment plant with a service life of 20 years. Its cost characteristics are as follows: Initial construction cost: $3,500k Annual maintenance: $25k the first year increasing by 5% each subsequent year alvage value: -$500k (cleanup bill) Estimate the annual life-cycle cost of this system. The interest rate is 3.5% per year.

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