For installation of a new mini hydropower project the


For installation of a new mini hydropower project, the utility must deposit enough money in a fund earning 8%/year to pay the $5,000 per year operating cost as well as the initial turbine and future replacement costs for the turbine every 40 years. Assuming the turbine costs $150,000 now and when replaced, what is the utility's capitalized cost?

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Financial Management: For installation of a new mini hydropower project the
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