D-77 A beautiful bridge is being built over the river (hat runs through a major city in your state. The cont of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accoun- tants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridgo project? (a) $18 million (b) $18.2 million (c) $20,000 million (d) $219,500 million

D-77 A beautiful bridge is being built over the river (hat runs through a major city in your state. The cont of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accoun- tants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridgo project? (a) $18 million (b) $18.2 million (c) $20,000 million (d) $219,500 million

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 12PROB

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A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 million. Annual costs of the bridge will be $200,000, and the bridge is estimated to last a very long time. If accountants in city hall use 3% as the interest rate for analysis, what is the annualized cost of the bridge project? (a) $18 million (b) $18.2 million (c) $20,000 million (d) $219,500 million?
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