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2. Capitalized Cost 20 points) a. Calculate the capitalized cost of a governmentmonument that is expected to last forever. The first cost is $5,000,000. At
2. Capitalized Cost 20 points) a. Calculate the capitalized cost of a governmentmonument that is expected to last forever. The first cost is $5,000,000. At the end of every 12 years there will be a major remodeling cost of $500,000. At the end of year 7 there will be a one-time remodeling cost of $300,000. Annual Operating & Maintenance Costs will total $15,000 for each year. i = 4% per year. (12 points) b. Draw the fully labeled cash flow diagram. (5 points) c. What is the equivalent uniform annual cost? (3 points)
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