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The capitalized cost is given by the following function, where C 0 is the original investment, t is the time in years, r is the
The capitalized cost is given by the following function, where C0 is the original investment, t is the time in years, r is the annual interest rate compounded continuously, and c(t) is the annual cost of maintenance.
C = C0 +
n | c(t)ert dt |
0 |
Find the capitalized cost C of an asset considering the following information. (Round your answers to the nearest cent.)
C0 | = | $600,000 |
c(t) | = | $35,000 |
r | = | 0.04 |
(a) Find the capitalized cost C of an asset for n = 5 years. $
(b) Find the capitalized cost C of an asset for n = 10 years. $
(c) Find the capitalized cost C of an asset for "forever". $
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