Using cash flow diagramming in your analysis

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The Alabama Department of Transportation has implemented a bridge modification plan with an initial cost of $150,000. It will have a planned major upgrade with a cost of $50,000 at the end of Year 10. The expected annual bridge maintenance cost is $5,000 for the first four years, and $8,000 thereafter. In addition, there is expected to be a recurring rework cost of $15,000 every thirteen years. ALDOT procedures call for treating this investment as a capitalized cost with a perpetual life. Assume i = 5%. Calculate the Present Worth, using Cash Flow Diagramming in your analysis.

Reference no: EM132049624

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