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Capitalized Cost

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Find the capitalized cost of a present cost of $30,000, monthly costs of $1,000, and periodic costs every 5 years of $5,000. Use an interest rate of 12% per year, compounded monthly??
A. $-80,000
B. $-136,100
C. $-195,200
D. $-3,600,000

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This explains the calculation of capitalized cost with the help of an example.

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ASSUMING TOTAL DURATION OF THREE ASSET IS 5 YEARS

CAPITALIZED COST = PRESENT COST + PRESENT ...

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