Determine capitalized cost under given set of assumptions


The capitalized cost, c, of the asset over its lifetime is total of initial cost and present value of all maintenance which will occur in future. It is calculated by formula c = c0 + integral 0 L m(t) e^-rt dt, where c0 is initial cost of asset, L is lifetime (in years), r is interest rate (compounded continuously), and m(t) is annual cost of maintenance. Determine capitalized cost under given set of assumptions. c0 = $300,000, r = 5%, m(t) = $30,000, L = 25 c = $.

Request for Solution File

Ask an Expert for Answer!!
Mathematics: Determine capitalized cost under given set of assumptions
Reference No:- TGS0847510

Expected delivery within 24 Hours