Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,275,000, has annual operating and maintenance costs of $1,000,000, and requires overhauls every 5 years at a cost of $1,725,000.
Design B is more sophisticated, including computer controls; it has an initial cost of $5,975,000, has annual operating and maintenance costs of $550,000, and requires overhauls every 10 years at a cost of $3,450,000.
Using a 10.0 %/year interest rate, determine the capitalized cost for each design.
Design A: $
Design B: $