Capitalized Cost In Exercises 39-42, the capitalized cost C of an asset is given by where
(a)
To calculate: The capitalized cost of asset for
Here,
Given Information:
The original investment
Formula used:
The integral of an exponential is:
Here,
Calculation:
Recall the expression of capitalized cost of asset.
Convert
Substitute
Now, consider the integral and solve separately.
Assume
Integrate,
And assume
(b)
To calculate: The capitalized cost of asset for
Here,
(c)
To calculate: The capitalized cost of asset for forever. If the capitalized cost is given by:
Here,
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