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Determine the capitalized cost

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A new bridge with a 250 year life expectancy is expected to have an initial cost of $40 million. The bridge must be resurfaced every 10 years at a cost of $2.5 million. The annual inspection and operating costs for the bridge are $75,000 per year. Determine the capitalized cost (CC) of the bridge using an i=10%. (Assume annual compound and CC is also called PW).

Reference no: EM131399224

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