SU 25 1 An irrigation system will have a first cost of $4,000,000, an annual maintenance cost of $35,000 and minor reconstruction costs of $150.000 every five years. At an interest rate of 8% per year, the capitalized cost of the dam is nearest to: 1. The first cost of a machine is $50,000. It will have an annual operating cost of $20,000 and $5,000 salvage value after its 5-year life. At an interest rate of 10% per year, the capitalized cost of the equipment is closest to