Determine the equivalent annual cost for the bridge

Assignment Help Business Economics

Reference no: EM13898405

A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 M. Annual cost of the maintenance is estimates at $200,000. Also, every 10 years the bridge needs an overhaul maintenance that costs $2 M. The bridge is estimated to last for a very long time. If accountants in city hall use 3% as the interest rate for analysis, determine the equivalent annual cost for the bridge.

Reference no: EM13898405

Questions Cloud

Capturing intellectual property : Explain the assertion that businesses can lose rights if they do not diligently assess and pursue intellectual property protection.

Trade secret-criminal enforcement : Trade Secret: Criminal Enforcement. Why has criminal misappropriation of trade secrets become an issue of greater concern in recent years?

Current issues in pattern law : Discuss the propriety of entities that acquire and assert patents but make no product. You discover a specific human gene that determines male pattern baldness. Explain what it means to say that you can patent this gene.

Assembly line will have initial purchase-installation cost : A Proposed improvement in an assembly line will have an initial purchase and installation cost of 15000 annual maintenance cost 5000 periodic overhauls once every 3 years excluding last year last year 13000 useful life of 9 years no salvage value pre..

Determine the equivalent annual cost for the bridge : A beautiful bridge is being built over the river that runs through a major city in your state. The cost of the bridge is estimated at $600 M. Annual cost of the maintenance is estimates at $200,000. Also, every 10 years the bridge needs an overhaul m..

About fat content and other ingredients on food packages : In December 1992, the federal government began requiring that all foods display information about fat content and other ingredients on food packages. The displays had to be verified by independent laboratories. The price of an evaluation of a food pr..

Annual disbursements for maintenance of critical heavily : Annual disbursements for maintenance of critical heavily used equipment will be $25,000 for the first 10 years, and then $35,000 into infinity. If interest is 15%, what is the capitalized cost?

What is her income elasticity of demand for whozits : Arista always spends 30% of her income on whozits. Assume that her income increases by some percentage while the price of whozits remains constant (and that all whozits cost the same). What is her income elasticity of demand for whozits?

Two identical small poor countries-country will the growth : Two identical small poor countries, Country A and Country B, have a well educated population but small capital stock. Initially they both have closed economies. Country B opens up for the world and can be observed as a small open economy. In what cou..

User Account

All Pages