Find the equivalent annual costs of the two school options: i= 10%; n = 20 years 1. Build New School Cost New = 2 million O&M costs for 1st year = 400k/year Salvage value at EOY 20 = 200k 2. Contract for busing pupils to nearest exit school: Cost for 1st year = 300k Arithmetic Gradient Increase = 30k/yr/yr

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Q: 1

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A:

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