Question 12 of 12 - / 12 View Policies Current Attempt in Progress A new water treatment plant is to be installed by the Beaver Water District. The initial installation costs $70 million (M). Minor replacement and renovation (R&R) is required after 10 years at a cost of $10M; major R&R at a cost of $20M is required 20 years after the initial installation. The 20-year cycle of minor and major replacements and renovations repeats indefinitely. Annual O&M cost the first year is $7M; thereafter, O&M cost increases at a rate of $0.20M per year. Annual O&M cost the 1st year after the minor replacement and renovation is $9.00M; thereafter, for the balance of the 20-year cycle, O&M cost increases at a rate of 7% per year. Based on a 5% MARR, what is the capitalized cost for the water treatment plant? Click here to access the TVM Factor Table calculator. $ Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is 70,000. Save for Later Attempts: 0 of 1 used Submit