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Capitalized cost is defined as the present workh of costs over an infinite analysis period. It can be shown that the factor (P/A,i%, N =

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Capitalized cost is defined as the present workh of costs over an infinite analysis period. It can be shown that the factor (P/A,i%, N = infinity) is equal to (1/i), with the interest rate i in decimal form. For example. (P/A,5%. N= infinity) = I/0.05 = 20 Determine the capitalized cost at 15% interest of a structure with an initial cost of $200,000 and annual operating and maintenance costs of $40,000

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