Please show the detail, thanks (8 points) Suppose that the cost of capital is 4% per annum.
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(8 points) Suppose that the cost of capital is 4% per annum. A machine costs $85,000, has a lifetime of 13 years, and a salvage value of $2,000. Find the machine's capitalized cost if the annual maintenance cost of a machine during its lifetime (paid at the end of each year) is: a) $150 every year; Answer = $ b) $0 for the first 7 years, and then forms an arithmetic progression: $100,...,$600; Answer = $ c) $150 in the first 7 years, and then forms an arithmetic progression: $250,...,$750. Answer = $ Click for a hint
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