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The capitalized cost, c 1 , of an asset over its lifetime is the total of the initial cost and the present value of all
The capitalized cost, of an asset over its lifetime is the total of the initial cost and the present value of all maintenance that will occur in the future. It is computed by the formula where the initial cost of the asset, is the lifetime in years is the interest rate compounded continuously and is the annual cost of maintenance. Find the capitalized cost under the following set of assumption
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Round to the nearest dollar as needed.
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