Chapter 04, Problem 053 (Video Solution) Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,125,000, has annual operating and maintenance costs of $1,000,000, and requires overhauls every 5 years at a cost of $825,000. Design B is more sophisticated, including computer controls; it has an initial cost of $5,375,000, has annual operating and maintenance costs of $400,000, and requires overhauls every 10 years cost of $2,925,000. Click here to access the TVM Factor Table Calculator Using a 6.5 %/year interest rate, determine the capitalized cost for each design. Design A: $ Design B: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is $400. Recommend which design should be chosen: Click if you would like to Show Work for this question: Qren Show Work