SUITS 10 points Save Answer Determine the capitalized cost of a permanent roadside historical marker that...

Question

Question

SUITS 10 points Save Answer Determine the capitalized cost of a permanent roadside historical marker that has a first cost of

Answer 1

Answer #1

Capitalized cost = first cost + present value of recurring cost

= 67500 + 2900(A/F, 15%, 6)/(15%)

= 67500 + 2900*0.114237/(15%)

= 69708.58

Hence, the required CC is $69,708.58

Answer 2

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