A new section of highway hais an initial ponsteuchon cost pf $500 million and annual maintenance costs of $500,000. Thehighway must be reconstructed every 30 yenrs at a cost of $200 million. The highway is expected to be needed indefinitely.The capitalized cost for this highway using 4%interest is most nearly:O$480 millionO $550million$580 millionO $601 million

A new section of highway hais an initial ponstruchon cost of $500 million and annual maintenance costs of $500,000. The highway must be reconstructed every 30 yentes at a cost of $200 million. The highway is expected to be needed indefinitely. The capitalized cost for this highway using 4 interest is most nearly: $480 million $550million $580 million $601 million

A new section of highway hais an initial ponstruchon cost of $500 million and annual maintenance costs of $500,000. The highway must be reconstructed every 30 yentes at a cost of $200 million. The highway is expected to be needed indefinitely. The capitalized cost for this highway using 4 interest is most nearly: $480 million $550million $580 million $601 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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