A project has an initial cost of $150,000. The annual operating cost is $8000 for the first 4 years and $5000 thereafter. There is a recurring $15000 maintenance cost each 15 years. The equation that represents the capitalized cost of this project at i=10% is: O CW(10%) -150,000+8,000(P/A 10%, 4)+(5000/0.1XP/F, 10%, 4) + 15000 (A/F, 10%, 15) O CW(10%)-150,000+8,000(P/A, 10%, 4)+(5000/0.1KP/F, 10%, 5)+(15000(A/F. 10 %, 15))/0.1 O CW(10%) - 150,000+8.000(P/A, 10 %, 4) + (5000/0.1) (P/F. 10%, 4) + (15000(A/F, 10%, 15))/0.1 O CW(10%) - 150,000+8.000(P/A, 10 %, 5)+(5000/0.1) (P/F. 10%, 5) + ( 15000 (A/F, 10%, 15))/0.1

A project has an initial cost of $150,000. The annual operating cost is $8000 for the first 4 years and $5000 thereafter. There is a recurring $15000 maintenance cost each 15 years. The equation that represents the capitalized cost of this project at i=10% is: O CW(10%) -150,000+8,000(P/A 10%, 4)+(5000/0.1XP/F, 10%, 4) + 15000 (A/F, 10%, 15) O CW(10%)-150,000+8,000(P/A, 10%, 4)+(5000/0.1KP/F, 10%, 5)+(15000(A/F. 10 %, 15))/0.1 O CW(10%) - 150,000+8.000(P/A, 10 %, 4) + (5000/0.1) (P/F. 10%, 4) + (15000(A/F, 10%, 15))/0.1 O CW(10%) - 150,000+8.000(P/A, 10 %, 5)+(5000/0.1) (P/F. 10%, 5) + ( 15000 (A/F, 10%, 15))/0.1

Name: A project has an initial cost of $150,000. The annual operating cost
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Description: A project has an initial cost of $150,000. The annual operating cost is $8000 for the first 4 yearsand $5000 thereafter. There is a recurring $15000 maintenance cost each 15 years. The equationthat represents the capitalized cost of this project at

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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