Annual maintenance costs on bridge are assumed

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Annual maintenance costs on a bridge are assumed to be $3,000 for the first 10 years starting in year 1, and then $2,000 per year starting in year 11. Assuming an infinite life of the bridge, the capitalized cost of these required payments is closest to what value below? You’ll want to use the capitalized equivalent CE(i) method for at least part of this problem. Assume i = 3% annual rate compounded annually.

Reference no: EM13889530

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