A newly constructed bridge costs $ The same bridge is estimated to need renovation every years at a cost of $ Annual repairs and maintenance are estimated to be $ per year.

a If the interest rate is determine the capitalized cost of the bridge.

b Suppose that in a the bridge must be renovated every years, not every years What is the capitalized cost of the bridge?

c Repeat a and b with the interest rate of What can you say about the effect of interest on the results.

Answer rating: 100% (QA)

a Construction cost 32000000 Renovation cost every 20 years 13500000 Annual maintenance 2700000 Inte... View the full answer