Problem 5-29 (book/static) Question Help To decrease the costs of operating a lock in a large river, a new system of operation is proposed. The system will cost $830,000 to design and build. It is estimated that it will have to be reworked every 10 years at a cost of $120,000. In addition, an expenditure of $80,000 will have to be made at the end of the fifth year for a new type of gear that will not be available until then. Annual operating costs are expected to be $70,000 for the first 15 years and $100,000 a year thereafter. Compute the capitalized cost of perpetual service at i = 7%. Click the icon to view the interest factors for discrete compounding when i = 7% per year. The capitalized cost of perpetual service is $1 million. (Round to three decimal places.)