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Question 3. (20 points) Maryland Governor is planning to renovate irrigation system. New system will cost $400,000, and it will require a regular maintenance cost
Question 3. (20 points) Maryland Governor is planning to renovate irrigation system. New system will cost $400,000, and it will require a regular maintenance cost every 5 years. The maintenance cost will be $25,000. At the end of the tenth year, there will be additional cost of $12,000 to control the pipes. Annual operating costs are expected to be $17,000 for the first 20 years and then $30,000 a year thereafter. Find the capitalized cost of this irrigation system at i=5%
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