A member of congress wants to know the capitalized cost of maintaining a proposed national park. The park will have an initial cost of $50,000,000, an annual maintenance cost $1,000,000 for the first 10 years and $500,000 thereafter. A minor construction cost at the end of each 20 years at a cost of $10,000,000. At an annual interest of 6% per year, the capitalized cost of the park is nearest to: a.$66,544,136 b.$54,530,759 c.$62,013,377 d.$57,360,087

A member of congress wants to know the capitalized cost of maintaining a proposed national park. The park will have an initial cost of $50,000,000, an annual maintenance cost $1,000,000 for the first 10 years and $500,000 thereafter. A minor construction cost at the end of each 20 years at a cost of $10,000,000. At an annual interest of 6% per year, the capitalized cost of the park is nearest to: a.$66,544,136 b.$54,530,759 c.$62,013,377 d.$57,360,087

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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