A proposed steel bridge has an indefinite life. The initial cost of the bridge is $3,750,000 and annual maintenance costs are estimated to be $25,000. The bridge deck will be resurfaced every 10 years for $900,000, and anticorrosion paint will be applied every 5 years for $250,000. Required:
If the interest rate is 8% what is the EAC?

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund