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2. A piece of equipment costs Cy to purchase new. It must be replaced every N years, at a cost of CR. The capitalized equipment

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2. A piece of equipment costs Cy to purchase new. It must be replaced every N years, at a cost of CR. The capitalized equipment cost, CC, is defined as Cv + P, where P is the money that must be invested now, at an annual effective compound interest rate i, so that, N years from now, the investment is worth CR + P. Derive an equation for the capitalized cost when the interest rate is compounded annually

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