Determine the capitalized cost of a permanent roadside historical marker that has a first cost of...

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Determine the capitalized cost of a permanent roadside historical marker that has a first cost of...

Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $70,000 and a maintenance cost of $2,300 once every 5 years. Use an interest rate of 8% per year.

The capitalized cost is $______.

business economics

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Answer 1

Answer #1

Capitalized cost:-

-70000-((2300*A/F,8%,5)/0.08)

-70000-((2300*0.170456)/0.08)

-70000-(392.0488/0.08)

-70000-4900.61

-74900.61

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Answer 2

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