Question: 2) A new bus terminal will have a construction cost of $200,000. The terminal will need a renovation every 10 years at a cost of

 2) A new bus terminal will have a construction cost of

2) A new bus terminal will have a construction cost of $200,000. The terminal will need a renovation every 10 years at a cost of $50,000. Annual maintenance costs will be $15,000 and MARR is 996. a) What is the capitalized cost of the bus terminal? Ans: $403,233.33 b) Because of bad weather conditions the terminal will need a renovation every 8 ycar. What would be the capitalized cost in that case? Ans: $417,041.33 c)How would the results change if MARR:15%, how does the rate affect the results? Ans: $394,028.89

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