What is the capitalized cost of owning and operating

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Diesel Locomotive are extreamley durable. The price of a new locomotive is $450,000 and if it is overhauled every 15 years at a cost of $75,000 it can be operated indifinetly. Annual operating cost (fuel, labor) are estamated at $150,000 a year. What is the capitalized cost of owning and operating this locomotive? Use interest rate of 6%.

Reference no: EM131082370

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