A city plans a pipeline to transport water from a distant watershed area to the city. The pipeline will cost $10 million and will have an expected life of 100 years. The city anticipates it will need to keep the water line in service indefinitely. Discuss Capitalized cost. Compute the capitalized cost, assuming 10% interest.
A city plans a pipeline to transport water from a distant watershed area to the city. The pipeline will cost $10 million and will have an expected life of 100 years. The city anticipates it will need to keep the water line in service indefinitely. Discuss Capitalized cost. Compute the capitalized cost, assuming 10% interest.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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