Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.

Maintenance cost for small bridge with an expected 50 year life are estimated to be $15,000 each year for the first 9 years, followed by a $20,000 expenditure in the year 15 and a $30,000 expenditure in the year 33. If interest rate is at 10% compounded monthly. What is the equivalent present value of the entire maintenance cost of that bridge? Note: Round off your interest rate to five decimal places Round your answer to 2 decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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