Question: Please Solve it Accurately . Step by Step Solution will be highly Appreciated. Thanks Question No.03 Evaluate and compare the equivalent uniform annual costs in
Please Solve it Accurately . Step by Step Solution will be highly Appreciated. Thanks

Question No.03 Evaluate and compare the equivalent uniform annual costs in the design of an aqueduct that is assumed to have a perpetual period of service, two alternative locations are proposed for a certain section. Location / involves a tunnel and flume. The tunnel is estimated to have a first cost of $200,000 and is assumed to be permanent. Its annual upkeep costs are estimated as $500. The flume will cost $90,000, has an estimated life of 20 years, and is expected to have annual maintenance costs of $2,000. Location K involves a steel pipe line and several miles of concrete- lined earth canal. The pipeline has an estimated first cost of $70.090. an estimated life of 50 years, and an estimated annual maintenance cost of $700. The earth canal will cost $80,000 and is assumed to be permanent. During the first 5 years it is estimated that maintenance on the earth canal will be $5,000 a year; thereafter, it is estimated as $1,000 a year. The concrete lining will cost $40,000; it has an estimated life of 25 years with annual maintenance cost of $300. All salvage values are assumed to be negligible. The stipulated interest rate is 8% Because this is a government project, no income tax difference are involved. (CLO-3)
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