All of the following equations for calculating the capitalized cost of alternative B are correct, except:

(a) CC_B = ˆ’750,000 ˆ’ 10,000/0.10

(b) CC_B = ˆ’750,000 ˆ’ 10,000/0.10 + 2,000,000(0.10)

(c) CC_B = [ˆ’750,000(0.10) ˆ’ 10,000]/0.10

(d) CC_B = ˆ’750,000 ˆ’ 10,000/0.10 + 2,000,000/(1+0.10)^ˆž

Problem is based on the following cash flows for alternatives A and B at an interest rate of 10% per year.

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Alternative First cost, $ AOC, $/year Salvage value, $ Life, years B -90,000 -750,000 - 50,000 -10,000 2,000,000 8,000 5