Explain development to reduce emergency response time

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Boone County Commissioners want to construct a road to provide another access to a new development to reduce emergency response time. The cost of the road is $350,000. It is estimated that it will cost $2500 to maintain the road the first year. Maintenance costs will increase by $300 each year after the first year. Every 25 years the County will replace the road with a new, identical system. The County commissioners want to know the Capitalized Costs of the road system if they can get 7% interest on their money.

Reference no: EM13238716

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