DO NOT USE EXCEL

Use tabulated factors and show cash flow diagram

be clean with your work

The Tennessee Department of Transportation (TDOT) wants to fund a yearly bridge inspection program to inspect all major bridges in the state. The program will cost $1.2 million to set up, $67.000 each year to operate, and will need $550,000 in new equipment every 5 years to remain state-of-the-art. The legislature has given TDOT $5 million for this new program. The interest rate used to fund these types of program is 6%. Is the $5 million allocation sufficient to completely fund the bridge inspection program for the indefinite future