Question: Time isn't provided in the question, this is the only thing I'm given (1 point) The capitalized cost of an assset is the sum of
Time isn't provided in the question, this is the only thing I'm given
(1 point) The capitalized cost of an assset is the sum of the original cost of the asset and the present value of maintaining the asset. Suppose a company is considering the purchase of two different machines. Machine 1 costs $5000 and t years from now will cost Mi(t) = 1000(1 + 0.08t) dollars to maintain. Machine 2 costs only $4000, but its maintenance cost at time t is M2(t) = 1400 dollars. If the cost of money is 7% per year compounded continuously, what is the capitalized cost of each machine? Machine 1 cost: dollars. Machine 2 cost: dollars
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