1. A water supply dam will cost $7 million to build and it will have erosion control costs of $800,000 every 5 years forever. At an interest rate of 10% per year, what is the capitalized cost of the dam?

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1. A water supply dam will cost $7 million to build and it will have erosion
control costs of $800,000 every 5 years forever. At an interest rate of 10%
per year, what is the capitalized cost of the dam?
2. A small flood control project has a capital investment cost of $300,000 and
an annual maintenance cost of $80,000 at 10% per year in 5 years. What is
the capitalize cost?
Transcribed Image Text:+Questions: 1. A water supply dam will cost $7 million to build and it will have erosion control costs of $800,000 every 5 years forever. At an interest rate of 10% per year, what is the capitalized cost of the dam? 2. A small flood control project has a capital investment cost of $300,000 and an annual maintenance cost of $80,000 at 10% per year in 5 years. What is the capitalize cost?
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