Question: I NEED A FULL DETAILED ANSWER The state plans to build a bridge. The first cost of the bridge is estimated at $A20 million, and
I NEED A FULL DETAILED ANSWER
The state plans to build a bridge. The first cost of the bridge is estimated at $A20 million, and the bridge will require $2.5 million of special every 10 years. Operating and normal maintenance costs of the bridge will be $130,000 per year and the bridge is estimated to last a very long time. (a) If the state uses 3% as the annual interest rate for analysis, what is the equivalent annual cost of the bridge project? (b) Draw the cash flow diagram
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