Homework Answers
Capitalized cost=PW
Given, i=15%
PW =
50000+3600/(1.15)4+3600(1.15)8+.....
Using the sum of infinite Geometric progression:
Present worth = 50000+3600/1.154 x
1/(1-1/1.154) = $54806.37
hence,the required capitalized cost is $54806.37
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CC
= A/i
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