Capitalized Cost
Not what you're looking for?
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
Purchase this Solution
Solution Summary
This explains the calculation of capitalized cost with the help of an example.
Solution Preview
ASSUMING TOTAL DURATION OF THREE ASSET IS 5 YEARS
CAPITALIZED COST = PRESENT COST + PRESENT ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.