Question: Please show all work! will rate immediately! The initial cost of a project is $110,000. Beginning in year 11, it will require upgrades of $6,000

 Please show all work! will rate immediately! The initial cost of

Please show all work! will rate immediately!

The initial cost of a project is $110,000. Beginning in year 11, it will require upgrades of $6,000 every 7 years and these are repeated indefinitely. An unexpected source of revenue of $20,000 is received in year 6 and is increased by $3,000 each year from year 7 to year 10. Calculate the capitalized cost (CC) of the project, at year 0, at an interest rate of 6% per year. Cash flow diagram is not drawn to scale Show all calculations $20,000 in year 6 and annual increase of $3,000 each year from years 7 to 10 0 1 2 3 4 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 oo Yrs i = 6% per year 00 $6,000 begins in year 11 and continues every 7 years to infinity $110,000

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