Question: EUAC nothing =? EUAC culvert = ? Problem 12-1 (algorithmic) Question Help A large mudslide caused by heavy rains will cost Sabino County $900,000 per

 EUAC nothing =? EUAC culvert = ? Problem 12-1 (algorithmic) Question

EUAC nothing =?

EUAC culvert = ?

Problem 12-1 (algorithmic) Question Help A large mudslide caused by heavy rains will cost Sabino County $900,000 per occurrence in lost property tax revenues. In any given year, there is one chance in 200 that a major mudslide will occur. A civil engineer has proposed constructing a culvert on a mountain where mudslides are likely. This culvert will reduce the likelihood of a mudslide to near zero. The investment cost would be $51,000, and annual maintenance expenses would be $3,000 in the first year, increasing by 4% per year thereafter. If the life of the culvert is expected to be 23 years and the cost of capital to Sabino County is 9% per year, should the culvert be built? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year

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