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The THK Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing and other maintenance will cost $550,000 every 3 years.

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The THK Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing and other maintenance will cost $550,000 every 3 years. Annual revenue is expected to be average $18.5 million. If i = 8% per year, what is a) the capitalized cost now, b) the equivalent A value of this capitalized cost

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