The cost of building the RAMA IX suspension bridge in Thailand is $8 million. The bridge will need to be repainted every 7 years and resurfaced every 9 years, each for an indefinite period of time. The cost of painting is expected to be $159,000 and the cost of resurfacing is estimated to be $417,000. For part a, please calculate your answer to the nearest whole dollar. Format 0000 No commas a. Determine the capitalized worth of the bridge at an interest rate of 4% per year compounded annually. $- For part b, please calculate your answer to 2 decimal places. Do not convert to a percent - leave in decimal form: 0.00 b. What is the effective interest rate for this project?

The cost of building the RAMA IX suspension bridge in Thailand is $8 million. The bridge will need to be repainted every 7 years and resurfaced every 9 years, each for an indefinite period of time. The cost of painting is expected to be $159,000 and the cost of resurfacing is estimated to be $417,000. For part a, please calculate your answer to the nearest whole dollar. Format 0000 No commas a. Determine the capitalized worth of the bridge at an interest rate of 4% per year compounded annually. $- For part b, please calculate your answer to 2 decimal places. Do not convert to a percent - leave in decimal form: 0.00 b. What is the effective interest rate for this project?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The cost of building the RAMA IX suspension bridge in Thailand is $8 million. The bridge will need to be repainted
every 7 years and resurfaced every 9 years, each for an indefinite period of time. The cost of painting is expected
to be $159,000 and the cost of resurfacing is estimated to be $417,000.
For part a, please calculate your answer to the nearest whole dollar. Format 0000 No commas
a. Determine the capitalized worth of the bridge
an interest rate of 4% per year compounded annually. $-
For part b, please calculate your answer to 2 decimal places. Do not convert to a percent - leave in decimal
form: 0.00
b. What is the effective interest rate for this project?

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