Calculation of perpetual equivalent annual worth of any cost

Reference no: EM13193951

There are usually no costs for the first 3 years, but thereafter maintenance is re- quired for restriping, weed control, light replacement, shoulder repairs, etc. For one section of a particular highway, these costs are projected to be $6000 in year 3, $7000 in year 4, and amounts increasing by $1000 per year through the highway's expected 30-year life. Assuming it is replaced with a similar roadway,

what is its perpetual equivalent annual worth (in years] through infinity) at an interest rate of8% per year?

Reference no: EM13193951

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