Q4. The THK Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing and other maintenance will cost $550,000 every 3 years. Annual revenue is expected to be average...

Q4. The THK Transportation estimates the cost of upgrading a highway to be $85 million now. Resurfacing and other maintenance will cost $550,000 every 3 years. Annual revenue is expected to be average $18.5 million. If i = 8% per year, what is

a) the capitalized cost now,

b) the equivalent A value of this capitalized cost?