A perpetual public park 1000000 upfront cost and 100000 for


A perpetual public park $1,000,000 upfront cost, and 100,000 for the major renovation every 10 years. On the other hand, annual maintenance cost is $10,000 and the project requires a major overhaul for $500,000 cost at the end of year 5. Assuming interest rate of 10% compounded monthly, calculate a. Capitalized cost b. Annual equivalent cost.

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Financial Management: A perpetual public park 1000000 upfront cost and 100000 for
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