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A flood-control dam with a 100-year life has an initial cost of $15 million. The gates in the dam must be replaced every five years,
A flood-control dam with a 100-year life has an initial cost of $15 million. The gates in the dam must be replaced every five years, at a cost of $2 million. If the interest rate is 8% per year, compounded annually, what is the capitalized equivalent of the annual cost of the dam? Ans. $4 261 412
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