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Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $200 million. The annual upkeep is expected to amount to $830,000. The turf will have to be replaced every 11 years at a cost of $840,000. Painting every 8 years will cost $70,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at /= 7% per year? The estimated capitalized cost is $ 201673626.70

Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $200 million. The annual upkeep is expected to amount to $830,000. The turf will have to be replaced every 11 years at a cost of $840,000. Painting every 8 years will cost $70,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at /= 7% per year? The estimated capitalized cost is $ 201673626.70

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $200 million. The annual upkeep is expected to amount to $830,000. The turf will have to be replaced every 11 years at a cost of $840,000. Painting every 8 years will cost $70,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at /= 7% per year? The estimated capitalized cost is $ 201673626.70
Transcribed Image Text:Beaver, a city in the United States, is attempting to attract a professional soccer team. Beaver is planning to build a new stadium that will cost $200 million. The annual upkeep is expected to amount to $830,000. The turf will have to be replaced every 11 years at a cost of $840,000. Painting every 8 years will cost $70,000. If the city expects to maintain the facility indefinitely, what is the estimated capitalized cost at /= 7% per year? The estimated capitalized cost is $ 201673626.70
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