A home builder must construct a sewage treatmentplant and
Chapter , Problem 5-57(choose chapter or problem)
A home builder must construct a sewage treatmentplant and deposit sufficient money in a perpet-ual trust fund to pay the $5000 per year operat-ing cost and to replace the treatment plant every40 years. The plant will cost $150,000, and futurereplacement plants will also cost $150,000 each.If the trust fund earns 8% interest, what is thebuilders capitalized cost to construct the plantand future replacements, and to pay the operatingcosts?
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