The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2...
The cost of upgrading a section of Grand Loop Road in Yellowstone National Park is $2 million. Resurfacing and other maintenance are expected to cost $380,000 every 8 years. What is the capitalized cost of the road at an interest rate of 11% per year?
The capitalized cost is determined to be $ .?
Homework Answers
The capitalized cost:-
-2000000-380000*(A/F,11%,8)/0.11
-2000000-380000*(0.084321)/0.11
-2000000-291290.73
= -2291290.73
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