Question: A subdivision developer must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating

Asubdivision developer must construct a sewage treatment plant and deposit sufficient money in a perpetual trust fund to pay the $5000 per year operating cost and to replace the treatment plant every 40 years. The plant and future replacement plants will cost $150,000 each. If the trust fund earns 8% interest, what is the developers capitalized cost?

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