Calculate the capitalized cos and annual equivalent cost

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A perpetual public park $1,000,000 upfront cost, and 100,000 for the major renovation every 10 years. On the other hand, annual maintenance cost is $10,000 and the project requires a major overhaul for $500,000 cost at the end of year 5. Assuming interest rate of 10% compounded monthly, calculate a. Capitalized cost b. Annual equivalent cost.

Reference no: EM131577968

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