Maintenance cost for a small bridge with an expected 60 - year life are estimated to be $ 1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period?
Maintenance cost for a small bridge with an expected 60 - year life are estimated to be $ 1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maintenance cost for a small bridge with an expected 60 - year life are estimated to be $ 1,000 each year for the first 5 years, followed by a $ 10,000 expenditure in the 15th year and a $ 10,000 expenditure in year thirty. At 10% interest rate, what is the equivalent uniform annual maintenance cost over the entire 60 - year period?
a. $ 687
b. $ 876
c. $ 678
d. $ 768
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