Discussion
Capitalised cost analysis is appropriate for projects whose life is
Answer: C
Correct answer: effectively perpetual
\[ CC = \frac{A}{i}. \] Capitalised cost is the sum which, invested at \( i \), would fund the annual cost for ever. It is the natural treatment for bridges, dams, roads and endowments - assets with no meaningful terminal date - and it is simply the present worth of a perpetuity.
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