4. Capitalized Cost is defined as the sum of the original cost Cv of the equipment plus the amount P that must be invested now so that the original equipment can be replaced in N years (assuming the same cost Cv). A heat exchanger is to be selected in a heating process. Type Capital investment Scrap value Useful life A $20,000 0 6 years B $34.000 4000 10 years Assume an annual effective compound rate of 8% and the replacement cost of each exchanger is the same as that of the original exchanger. Determine which is cheaper by comparing the Capitalized cost