Question: The operation and maintenance cost for a newly constructed dormitory is $125,000 for the first year and is expected to increase $22,500 each year thereafter.

The operation and maintenance cost for a newly constructed dormitory is $125,000 for the first year and is expected to increase $22,500 each year thereafter. The net present worth for the 30-year lifespan of the structure with a bond rate of 4%

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