Problem $1$: $(10)$

Given: As a city engineer, you seek the capitalized cost of perpetual service from a water

storage tank. Due to the highly corrosive nature of your coastal environment, the tank $($which

costs $$40,000)$ is maintained at an annual cost of $$1,000$ and is replaced every $10$ years.

Whenever its service life ends, the tank is intended to be sold to a steel mill as metal scrap for

$$3000.$ Use $10\%$ interest rate.

Find: $($a$)$ Find the capitalized cost of the storage tank investment. $($b$)$ Give two reasons why the

formula you used in $($a$)$ is most appropriate for questions involving civil systems of this type.