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6. (5 marks) A company is planning to purchase a new warehouse for $2,500,000. There will be no maintenance costs for the first 3 years.

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6. (5 marks) A company is planning to purchase a new warehouse for $2,500,000. There will be no maintenance costs for the first 3 years. Then, annual maintenance costs will be $15,000 from year 4 to year 11. These costs will increase to $25,000 per year from year 12 to the end of the life of the warehouse. The warehouse will also be painted every 15 years (beginning at year 11) at a cost of $40,000. Determine the capitalized cost of the warehouse if the MARR considered is 12% per year. a. $ 2,608,807 b. $ 2,626,999 c. $ 2,775,440 d. $ 2,842,273 6. (5 marks) A company is planning to purchase a new warehouse for $2,500,000. There will be no maintenance costs for the first 3 years. Then, annual maintenance costs will be $15,000 from year 4 to year 11. These costs will increase to $25,000 per year from year 12 to the end of the life of the warehouse. The warehouse will also be painted every 15 years (beginning at year 11) at a cost of $40,000. Determine the capitalized cost of the warehouse if the MARR considered is 12% per year. a. $ 2,608,807 b. $ 2,626,999 c. $ 2,775,440 d. $ 2,842,273

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