The first cost of a dam that is expected to have an infinite

The first cost of a dam that is expected to have an infinite life is $30 million. The maintenance cost of the dam will be $200, 000 per year. At an interest rate of 10% per year, the annual worth of the dam is nearest to: $3,000, 000 $3,200, 000 $200, 000 $4,500, 000

Solution

A = 30,000,000*(0.10) + 200,000
= $3,200,000

b is the answer