Question

A new bridge with an infinite life is expected to have a first cost of $...

A new bridge with an infinite life is expected to have a first cost of $ 55 million.  It will have a maintenance cost of $ 103,323.5 per year.  An interest rate of 10% per year, its AW is:  ....................$ million  (round to Two Decimal)

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Answer #1

Annual worth of first cost =$55,000,000×10%= $5,500,000

Maintance cost per year =$103,323.5

Net Annual worth= ($5,500,000-$103,323.5) =$5,396,676.5

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