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What is the capitalized equivalent cost of this investment

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UB's is considering investing in new x-ray diffraction equipment for the Materials analysis lab. The machine will cost exist115,000 and has an annual maintenance cost of exist11,000. Every four years UB will pay exist19,000 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: EM131595453

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