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arket value at the end of its life. Operating and maintenance expenses for the system are projected to av nillion per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The stuc d is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% pe apitalized worth of the system is S million. (Round to two decimal places.)

arket value at the end of its life. Operating and maintenance expenses for the system are projected to av nillion per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The stuc d is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% pe apitalized worth of the system is S million. (Round to two decimal places.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A city is spending $20.8 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is S million. (Round to two decimal places.)
Transcribed Image Text:A city is spending $20.8 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of its life. Operating and maintenance expenses for the system are projected to average $0.8 million per year. If the city's MARR is 12% per year, what is the capitalized worth of the system? The study period is 100 years. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 12% per year. The capitalized worth of the system is S million. (Round to two decimal places.)
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