Answer to Question #265355 in Economics for Sera

Question #265355

Equipment costing 2,000,000 with a 200,000 annual operation and maintenance cost. Determine the capitalized cost if money is worth 20% per year.

Expert's answer

The capitalized cost is:

"CC = 2,000,000 + 200,000\/0.2 = 3,000,000."

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