A) is the annual Cast of mantenance Cin dollas) a) Find the Capitalized Cust of an asset for n=5 years when Ao = $ 140,000 c(t) - $ 12,000 t, r=.04. b) Find the capitalized cos of an asset forever $ 140, 000 cit)= $12,00o t, r=.04. %3D

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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The capitalized Čost A of an asset is given by
A= Ao t c(t) e-** dt
%3D
Where
A is He onginal investment
t is the time in years
r3 the anneal interest rate Gn decimal form) compounded Coine ously, and
A) is the annual
Cast of mantenance Cin dollacs)
a) Find the capitalized Cust of an asset for n=5 years when
A = $ 140,000
c(t) = $ 12,000 t ,
T:.04.
%3D
Cost
b) Find the capitalized cosp of an asset forever
cit)= $12,000 t,
r:.04.
Ao = $
140,000
Transcribed Image Text:The capitalized Čost A of an asset is given by A= Ao t c(t) e-** dt %3D Where A is He onginal investment t is the time in years r3 the anneal interest rate Gn decimal form) compounded Coine ously, and A) is the annual Cast of mantenance Cin dollacs) a) Find the capitalized Cust of an asset for n=5 years when A = $ 140,000 c(t) = $ 12,000 t , T:.04. %3D Cost b) Find the capitalized cosp of an asset forever cit)= $12,000 t, r:.04. Ao = $ 140,000
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