Question

In: Economics

Calculate the capitalized cost of a concrete bridge that must be replaced at the end of...

Calculate the capitalized cost of a concrete bridge that must be replaced at the end of useful life of 30 years. Worth of money is 6% annually. Data's are as follows:
First Cost $4,800,000.00
Annual Maintenance $55,000.00
Repair Cost $280,000.00
(every 5 years)

Solutions

Expert Solution

The given data is executed in an excel:

The capitalized cost = $7,551,342

The excel calculation and formula used are shown below:


Comment on any changes needed.

Please don't forget to rate the answer if its helpful, thank you.

Rahul Sunny answered 1 year ago
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