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A project with an infinite life has the following details: (b) Initial cost = $6 million Annual operating cost $100,000 Major maintenance cost = $2

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A project with an infinite life has the following details: (b) Initial cost = $6 million Annual operating cost $100,000 Major maintenance cost = $2 million every 30 years, beginning 30 years from now Calculate the capitalised cost at 8% interest per annum (10 marks)

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