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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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