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Your County is planning to build a park. The initial cost for the park will amount to $6,500,000. Annual maintenance and repairs will amount to:
$25,000 for each of the first five years,
$30,000 for each of the next ten years and,
$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.
a) Use a constant interest rate of 5% and determine the equivalent uniform annual cost for a 20-year period.© BrainMass Inc. brainmass.com March 4, 2021, 10:04 pm ad1c9bdddf
The solution explains how to calculate the equivalent uniform annual cost.