A city is spending $20.3 million on a new sewage system. the expected life of the system is 50 years. and it will have no market value at the end of its life. operatikg and maintance expenses for the system is average $0.5 million per year. If the citys MARR is %10 per year . what is the capitalized worth of the system? the study period is 100 years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section10.A: Mutually Exclusive Investments Having Unequal Lives
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A city is spending $20.3 million on a new sewage system. the expected life of the system is 50 years. and it will have no market value at the end of its life. operatikg and maintance expenses for the system is average $0.5 million per year. If the citys MARR is %10 per year . what is the capitalized worth of the system? the study period is 100 years.
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