Question: Incorrect Question 6 0/0.75 pts RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel

 Incorrect Question 6 0/0.75 pts RR must build a tunnel to

Incorrect Question 6 0/0.75 pts RR must build a tunnel to maintain his access around the mountain. The tunnel could be fabricated of normal steel for an initial cost of $30,000 and should last for 15 years. Maintenance will cost $1,000 per year. Another option would be to use corrosion resistant steel, which will last for 15 years, with annual maintenance cost of $100. In 15 years there would be no salvage value for either bridge. RR pays combined federal and state taxes at the 48% marginal rate and uses straight-line depreciation. If the after tax MARR is 12%, what is the maximum amount that should be spent on the corrosion-resistant tunnel? Enter your answer as follow: 123456.78 28642.6600 Hint: This is a breakeven analysis using after tax cash flow-what is the unknow in this case? Set up a cash flow table as demonstrated in lecture will make this easier

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