Calculate the equivalent uniform annual cost


Lubbock County is planning to build a bridge across Rio de Lubbock to make easy afternoon skiing in El Dusto Ski Basin. The first cost for the bridge will be $6,500,000. Annual repairs and maintenance will cost $25,000 for each of the first 5 years, increase to $30,000 for each of the next 10 years, and increase again to $35,000 for each of the next 5 years. In addition, a major overhaul costing $500,000 will be needed at the end of tenth year. Use an interest rate of 5 percent and calculate the equivalent uniform annual cost for a 20-year period.

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Macroeconomics: Calculate the equivalent uniform annual cost
Reference No:- TGS0872741

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