Determine the equivalent uniform annual cost

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A parish in the state is planning to construct a new bridge across the local river. The initial cost for the bridge will amount to $7,000,000. Annual maintenance and repairs will amount to $25,000 for each of the first five years, to $30,000 for each of the next ten years, and 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. If interest is 5%, determine the Equivalent Uniform Annual Cost for a 20 year period.

Reference no: EM13743791

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