A newly constructed bridge costs $5,000,000. The same bridge is estimated to need renovation every 10 years at a cost of $1,000,000. Annual repairs and maintenance costs are estimated to be $300,000 per year (forever)
(a) Draw the cash flow series of this investment during the first ten years (from end of year 0 to end of year 10).
(b) If the interest rate is 9%, determine the capitalized equivalent worth of the bridge (the amount of money that must be invested today to yield a certain A at the end of each and every year forever).