What is the capitalized equivalent cost

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A manufacturing company is considering a new investment in a machine that will cost $117,000 and has an annual cost of $7,900. There is also an additional overhauling cost of $24,000 for the equipment once every four years. Assuming that this equipment will last infinitely under these conditions, what is the capitalized equivalent cost of this investment at an interest rate of 15%?

Reference no: EM13880880

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