The Golden Gate bridge is maintained by 38 painters and 17 ironworkers (who replace corroding steel and rivets). If the painters get an average wage of $120,000 per year (with benefits) and the ironworkÂers get $150,000 per year, what is the capitalized cost today of all the future wages for bridge maintenance at an interest rate of 8% per year?
What will be an ideal response?
CC = - [38(120,000) + 17(150,000)]/0.08
= $-88,875,000
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