The town of Covington is planning to build a pedestrian/bicycle bridge across a stream at a local park. The initial cost of the bridge is estimated at S400,000 with annual maintenance of $12,000. The bridge must be resurfaced every 12 years at a cost of $100,000 and must be painted every 6 years at a cost of $25,000. If the expected life of the bridge is 60 years, what is the EAC at i=4%?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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3. The town of Covington is planning to build a pedestrian/bicycle bridge across a stream at a
local park. The initial cost of the bridge is estimated at $400,000 with annual maintenance of
$12,000. The bridge must be resurfaced every 12 years at a cost of $100,000 and must be
painted every 6 years at a cost of $25,000. If the expected life of the bridge is 60 years, what
is the EAC at i-4%?
Transcribed Image Text:3. The town of Covington is planning to build a pedestrian/bicycle bridge across a stream at a local park. The initial cost of the bridge is estimated at $400,000 with annual maintenance of $12,000. The bridge must be resurfaced every 12 years at a cost of $100,000 and must be painted every 6 years at a cost of $25,000. If the expected life of the bridge is 60 years, what is the EAC at i-4%?
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