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The road to Yellowstone is planned to be repaired after the recent flooding. Major maintenance...

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Accounting

The road to Yellowstone is planned to be repaired after the recent flooding. Major maintenance work will happen now and every four years and will cost $500,000 each time. In addition, annual maintenance is $100,000 per year.

What is the capitalized cost of the road maintenance at an interest rate of 8 percent per year?

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