Determine the annual worth using an interest rate

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A bridge has a first cost of $3,200,000. The bridge will require a one-time major repair in year 10 at a cost of $25,000. The AOC is $75,000 per year for years 1 -4 and $ 100,000 per year in year 5 and afterward forever. The bridge is expected to last infinitely. Determine the annual worth using an interest rate of 10% per year, compounded yearly.

Reference no: EM13950125

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