The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10%
Question:
The capitalized cost of $10,000 every 5 years forever, starting now at an interest rate of 10% per year, is closest to:
(a) $–13,520
(b) $–16,380
(c) $–26,380
(d) $–32,590
The interest rate is 10% peryear.
Transcribed Image Text:
Machine X Machine Y Initial cost, $ Annual operating cost, $ per year20,00 Salvage value, S Life, years 80,000 -95,000 -15,000 30,000 10,000
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