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What is the capitalized equivalent cost of investment

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Problem

Will cost $115,000 and has an annual maintenance cost of $11,000. Every four years UB will pay $19,000 to calibrate the equipment and perform routine preventive maintenance. Assuming that the equipment will last forever under these conditions, what is the capitalized equivalent cost of this investment and an interest rate of 11%?

Reference no: EM131984626

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