A new lock is being considered for a dam, and it will cost $650,000 to design and build. Every 10 years, $100,000 of maintenance will be required. In addition, a one- time upgrade costing $50,000 will be required at the end of year-5. Annual operating expenses are expected to be $30,000 for the first 15 years and $35,000 per year thereafter. Compute the cost of perpetual service at i = 8%. 165 000

A new lock is being considered for a dam, and it will cost $650,000 to design and build. Every 10 years, $100,000 of maintenance will be required. In addition, a one- time upgrade costing $50,000 will be required at the end of year-5. Annual operating expenses are expected to be $30,000 for the first 15 years and $35,000 per year thereafter. Compute the cost of perpetual service at i = 8%. 165 000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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