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 its 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?
is 40 years, and it will have no market value at the end of its 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?
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