What is the capitalized worth of system-sewage system

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A city is spending $20 million on a new sewage system. The expected life of the system is 40 years, and it will have no market value at the end of it life. Operating and maintenance expenses for the system are projected to average $0.6 million per year. If the city’s MARR is 8% per year, what is the capitalized worth of the system?

Reference no: EM13772377

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