What is the capitalized cost of the bridge

Reference no: EM13783556

A newly constructed bridge costs $15,000,000. The same bridge is estimated to need renovation every 15 years at a cost of $3,000,000. Annual repairs and maintenance are estimated to be $1,000,000 per year. (a) If the interest rate is 5%, determine the capitalized cost of the bridge. (b) Suppose that in (a), the bridge must be renovated every 20 years, not every 15 years. What is the capitalized cost of the bridge?

Reference no: EM13783556

Questions Cloud

Minimize inventory and maximize flow rate for entire process : Metal frames for kick scooters are manufactured in two steps: Stamping and assembly. Each frame is made up of three pieces: one unit of part A and two units of part B. Which batch size for the stamping machine would minimize inventory and maximize th..

Explain botcharovas seven steps toward forgiveness : Explain Botcharova's seven steps toward forgiveness and how the steps work toward solving the continuation of the revenge cycle when implemented

History and core business of each company : 1. Describe the history and core business of each company 2. Compare and contrast the management approach each took to Internet marketing and sales.

Individual development plan : Complete the self-quiz below. Develop a baseline IDP by selecting your top three development areas (your lowest scoring items) . . Self Quiz: What are your Career Prospects?

What is the capitalized cost of the bridge : A newly constructed bridge costs $15,000,000. The same bridge is estimated to need renovation every 15 years at a cost of $3,000,000. Annual repairs and maintenance are estimated to be $1,000,000 per year. (a) If the interest rate is 5%, determine th..

Explain conflict from social or psychological perspective : Explain conflict from the Social/Psychological perspective. What are its causes and effects? Evaluate the theory strengths and weaknesses as you see them: Social/Psychological perspective

Marketing of health care products and services : How and why is pricing critically important to the marketing of health care products and services? What factors play a role in the pricing decision?

Annual holding cost but the average cost : A company’s holding cost is 2% per month. Its annual inventory turns are 7. The company buys an item for $120. What is the average cost ($s), to hold this item in inventory (NOT annual holding cost but the average cost of each individual item on aver..

The long-run and short-run labor demand curves : 1.) Demonstrate in a graph that if the production technology is of the fixed proportion type (i.e., L-shaped isoquants), an increase in the wage rate will cause only a scale effect on labor demand and no substitution effect. Will there be any differ..

User Account

All Pages