Determine the equivalent uniform annual cost

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Lubbock County is planning to construct a bridge across the Rio de Lubbock to facilitate afternoon skiing in the El Dusto Ski Basin. The first cost for the bridge will be $6,500,000. Annual maintenance and repairs will cost $25,000 for each of the first five years, increase to $30,000 for each of the next ten years, and increase again to $35,000 for each of the next five years. In addition, a major overhaul costing $500,000 will be required at the end of the tenth year. Use an interest rate of 5% and determine the equivalent uniform annual cost for a 20-year period.

Reference no: EM13736551

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