A government has decided to build a bridge. that initial cost is estimated to be 60,000,000. the annual maintenance is estimated to be 4,000,000. every ten years a minor upgrade will be needed costing 20,000,000. every 20 years a major repair and refurbishment will be 40,000,000. If the bridge is expected to last indefinitely and effective I = 6% per year what is the capitalized cost of the bridge?
A government has decided to build a bridge. that initial cost is estimated to be 60,000,000. the annual maintenance is estimated to be 4,000,000. every ten years a minor upgrade will be needed costing 20,000,000. every 20 years a major repair and refurbishment will be 40,000,000. If the bridge is expected to last indefinitely and effective I = 6% per year what is the capitalized cost of the bridge?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A government has decided to build a bridge. that initial cost is estimated to be 60,000,000. the annual maintenance is estimated to be 4,000,000. every ten years a minor upgrade will be needed costing 20,000,000. every 20 years a major repair and refurbishment will be 40,000,000. If the bridge is expected to last indefinitely and effective I = 6% per year what is the capitalized cost of the bridge?
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