Assume that the funding can be set aside in an account that

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A new dam project will require $48,000 a year in maintenance costs after it is complete. These maintenance costs will continue forever. Assume that the funding can be set aside in an account that earns 5% interest per year. What is the lump sum to be set aside now in order to cover the $48,000 in annual maintenance costs?

Reference no: EM13631210

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