Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every 6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year.

Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every 6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 19E

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Question

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Can someone please help me to solve the following question in excel with a file laid out like this please and thank you!!!!

Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every
6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year. -
(N
ni

4
5
6
7
8
19
N24
13
OR
A
0
1
2
4
5
6
7
8
Infinite life time
Years
First Cost
CC1
CC2
CC3
Total
Annual Cost
Recurring Cost
G
H

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