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this is all the information they gave me (1 point) The capitalized cost of an assset is the sum of the original cost of the
this is all the information they gave me
(1 point) The capitalized cost of an assset is the sum of the original cost of the asset and the present value of maintaining the asset. Suppose a company is considering the purchase of two different machines. Machine 1 costs $10000 and t years from now will cost M1(t) - 1000(1 + 0.08t) dollars to maintain. Machine 2 costs only $6000, but its maintenance cost at time t is M2(t)1100 dollars. If the cost of money is 7% per year compounded continuously, what is the capitalized cost of each machine? Machine 1 cost: dollars. Machine 2 cost: dollars Step by Step Solution
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