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Problem D Given the following problem, answer questions 22 to 24 A company is planning to expend $4,000,000 ina new warehouse. There will be no
Problem D Given the following problem, answer questions 22 to 24 A company is planning to expend $4,000,000 ina new warehouse. There will be no maintenance costs for the first 3 years. Then, annual maintenance costs will be $17,500 from year 4 to year 10. These costs will increase to $25,000 per year from year 11 to the end of the life of the warehouse. The warehouse will also be painted every 12 years (beginning at year 10) at a cost of $50,000. Consider a MARR of 10% per year. 23. What is the capitaized cost of the maintenance costs fromn year 11 to the end of the life of the warehouse? a)$ 96,376 c) $ 250,000 b) $ 160,384 d) S 355,197 24. What is the capitalized cost of painting the warehouse? a) S 9,021 c)$ 28,296 b) $ 23.400 d) $ 31,129
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