Determine the capitalized cost using given data

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Reference no: EM132050028

Question: The president of greaterthanorequalto Healthcare is considering an external long-long-term contract offer that will significantly improve the energy efficiency of their imaging systems. The payment schedule has two large payments in the first years with continuing payments thereafter. The proposed schedule is $200,000 now, $300,000 two years from now, $50,000 every 5 years (starting in year 5), and an annual amount of $8000 beginning 15 years from now. Determine the capitalized cost (that is, the present worth) at 6% per year.

Reference no: EM132050028

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