What is perpetual equivalent annual worth at interest rate

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The cost associated with maintaining rural highways follows a predictable pattern. There are usually no costs for the first three years, but maintenance is required for restriping, weed control, light replacement, shoulder repairs, etc. For one section of a particular highway, these costs are projected to be $6,000 in year 3, $7,000 in year 4, and amounts increasing by $1,000 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 one through infinity) at an interest rate of 8% per year?

Reference no: EM13203880

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