An investment proposal calls for $178,184 payment now and a second $348,611 14 years from now. The investment is for a project with a perpetual life. The annual interest rate is 6%. What is the approximate capitalized cost?

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 16E: Mortgage What is the monthly payment on a 30-year mortgage of $80,000 at 9% interest? What is the...
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An investment proposal calls for $178,184 payment now and a second $348,611 14 years
from now. The investment is for a project with a perpetual life. The annual interest rate is
6%. What is the approximate capitalized cost?
Transcribed Image Text:An investment proposal calls for $178,184 payment now and a second $348,611 14 years from now. The investment is for a project with a perpetual life. The annual interest rate is 6%. What is the approximate capitalized cost?
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