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The Missouri and Illinois Departments of Transportation are designing a new bridge to span the Mississippi River. The bridge will cost $660 million to build,

The Missouri and Illinois Departments of Transportation are designing a new bridge to span the Mississippi River. The bridge will cost $660 million to build, with the costs spread evenly over Years 1-3 (i.e., construction costs of $220 million per year). The bridge will open to traffic at the beginning of Year 4. From that point on, O&M costs will be $10 million per year. What is the capitalized cost of this bridge at an interest rate of 6% per year? You must draw a correct cash flow diagram to get full credit for this problem.

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