Question
Maintenance costs on a bridge are $7,500 every five years starting at the end of year 5 . For analysis purposes, the bridge is assumed
Maintenance costs on a bridge are $7,500 every five years starting at the end of year 5 . For analysis purposes, the bridge is assumed to have an infinite life. What is the Capitalized Equivalent (CE) cost of these infinite payments, assuming an annual interest rate of 9% compounded annually.
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