SOLUTION: An equipment costs 50,000 pesos. It will have an annual operating cost of 20,000 pesos and 5,000 pesos salvage value after 5 years. At an interest rate of 10% per year, the capital

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Question 1186539: An equipment costs 50,000 pesos. It will have an annual operating cost of 20,000 pesos and 5,000 pesos salvage value after 5 years. At an interest rate of 10% per year, the capitalized cost of the equipment is?
Answer by CPhill(1959) About Me  (Show Source):
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The capitalized cost of the equipment is approximately **122,711.13 pesos**. This represents the total present worth of all costs associated with owning and operating the equipment over its lifespan, considering the initial cost, recurring operating expenses, and the eventual salvage value.