What will be its capitalized cost at an interest rate

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A city that is attempting to attract a professional football team is planning to build a new stadium costing $500 million. Annual upkeep is expected to amount to $1,000,000 per year. The artificial turf will have to be replaced every 20 years at a cost of $2,000,000. Painting every 5 years will cost $250,000. If the city expects to maintain the facility indefinitely, what will be its capitalized cost at an interest rate of 10% per year?

Reference no: EM13893190

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