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Calculate the capitalized cost of $60,000 every 6 years forever, starting now at an interest rate of 8% per year. | Project Year Recurring cost
Calculate the capitalized cost of $60,000 every 6 years forever, starting now at an interest rate of 8% per year. | Project Year Recurring cost First Cost -60,000 Cash flow, $ -60,000 1 O For infinite life alternatives, if there is a Present worth value=> keep it as it is if there is a non-recurring single payment (S) => we should directly covert it (them) to the Present worth using appropriate factor/ factors -60,000 -60,000 if there is a Recurring single amount=> we should convert them into an A value and then divide by i. -60,000 -60,000 lo TO If there is a Seri (annual worth which has started from the end of year 1 till end of year n=> we should divide its value by i% (A/i) to find Present Worth. Infinite If there is a Seri that is started from any periods after period 1 and continues till the end of year n=> we should divide its value by i first (A/i) and then use a proper factor to convert it to the Present Worth at the end of year 0. cc1 cc2 CC
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