3) A proposed civic center is estimated to cost $10,000,000 and have a life of 45 years. The maintenance costs are estimated to be: 15 ye Paint & normal repairs $20,000/yr (billed and paid at end of first year and each succeeding year) and increasing 10%/yr over the 45 yr life. Replace A/C, floor tiles, and seat upholstery every the cost 15 years from now is estimated at $2,000,000 and the cost is expected to double for the replacement required at end of 30 th year. After 45 years it is estimated the entire civic center will have a salvage value of $500,000. a) If the civic center will be financed with 45-yyear revenue bonds at 8% to be paid off in equal annual installments, how much annual revenue is required to pay off the bonds plus paint, repairs, and replacements as listed above? b) A group of citizens feel that revenue from the civic center itself should amount to $200,000 the first year (use EOY receipt) and increase 10 % per year thereafter for the 45-year life. Under the 8 %, 45-year financing of (a), how much annual subsidy is needed to pay for the payments and other costs listed above? (Use Annual Worth (AW) Method) (30) 3) A proposed civic center is estimated to cost $10,000,000 and have a life of 45 years. The maintenance costs are estimated to be: 15 ye Paint & normal repairs $20,000/yr (billed and paid at end of first year and each succeeding year) and increasing 10%/yr over the 45 yr life. Replace A/C, floor tiles, and seat upholstery every the cost 15 years from now is estimated at $2,000,000 and the cost is expected to double for the replacement required at end of 30 th year. After 45 years it is estimated the entire civic center will have a salvage value of $500,000. a) If the civic center will be financed with 45-yyear revenue bonds at 8% to be paid off in equal annual installments, how much annual revenue is required to pay off the bonds plus paint, repairs, and replacements as listed above? b) A group of citizens feel that revenue from the civic center itself should amount to $200,000 the first year (use EOY receipt) and increase 10 % per year thereafter for the 45-year life. Under the 8 %, 45-year financing of (a), how much annual subsidy is needed to pay for the payments and other costs listed above? (Use Annual Worth (AW) Method) (30)