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Annual worth of a dam

The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. If the dam is expected to last forever, it's equivalent annual worth at an interest rate of 10% per year is closest to?

A. $-576,380
B. $-591,580
C. $-630,150
D. $-691,460

Solution Summary

This shows how to determine annual worth of a dam.