Question: A proposal is made to buy a machine for $ 1 5 0 , 0 0 0 . The expected service life is 1 5

A proposal is made to buy a machine for $150,000. The expected service life is 15 years with zero salvage value. What is most nearly the capitalized cost if the machine is kept in service indefinitely? The interest rate is 8%.
A. $150,000
B. $175,000
C. $219,000
D. $225,000
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A proposal is made to buy a machine for $ 1 5 0 ,

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