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2. The construction cost of a parking facility on a local university campus is $200,000 Assume that maintenance will begin on the facility at the
2. The construction cost of a parking facility on a local university campus is $200,000 Assume that maintenance will begin on the facility at the end of the third year of operation, and will increase by $500/year until the end of the useful life of the facility. Maintenance costs are expected to accrue to $2,000 during the third year of operation. If the interest rate is 7%, and the facility is expected to last 25 years, find the following (5 points): a) The present worth of the maintenance costs of the facility (2 points) b) The facility's annual maintenance costs. (2 points)
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