Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.
Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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From the Question, what is the equivalent uniform annual cost over the entire-50 year period?
Transcribed Image Text:Maintenance cost for small bridge with an
expected 50 year life are estimated to be $15,000
each year for the first 9 years, followed by a
$20,000 expenditure in the year 15 and a $30,000
expenditure in the year 33. If interest rate is at
10% compounded monthly. What is the
equivalent present value of the entire
maintenance cost of that bridge?
Note: Round off your interest rate to five
decimal places
Round your answer to 2 decimal places.
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