The city of New Haven is trying to determine how big its capital budget needs to...
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The city of New Haven is trying to determine how big its capital budget needs to be to pay for the construction and on-going maintenance of a new 5 mile stretch of highway. The section of highway is being built at an initial cost of $3.5 million. The maintenance and occasional resurfacing of the section of highway are expected to cost $460000 every 3 years. What is the capitalized cost of the highway at an interest rate of 7.5% per year? Note: capitalized cost is a negative number. Your Answer: Answer The city of New Haven is trying to determine how big its capital budget needs to be to pay for the construction and on-going maintenance of a new 5 mile stretch of highway. The section of highway is being built at an initial cost of $3.5 million. The maintenance and occasional resurfacing of the section of highway are expected to cost $460000 every 3 years. What is the capitalized cost of the highway at an interest rate of 7.5% per year? Note: capitalized cost is a negative number. Your Answer: Answer
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Governmental and Nonprofit Accounting
ISBN: 978-0132751261
10th edition
Authors: Robert Freeman, Craig Shoulders, Gregory Allison, Robert Smi
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