A roads department wants to capitalize annual maintenance fees of $5 million. It applies to the...
A roads department wants to capitalize annual maintenance fees of $5 million. It applies to the central government for a grant to fund this capitalization, at 5%. What must be the size of the grant to do this?
Homework Answers
Ans $ 100 million
Size of the grant = Annual Fees / Capitalization rate
= 5 / 5%
= $ 100 million
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