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Question 6 A flood control project at Pleasant Valley dam is projected to cost $2,300,000 today, have annual maintenance cost

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Answer #1

Capitalized cost = 2300000 + 50000 / 0.12 + [280000 * (A/F, 12%,9)] / 0.12

= 2300000 + 50000 / 0.12 + [280000 * 0.067679] / 0.12

= 2874584.07

= 2874584

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