A) is the annual Cast of mantenance Cin dollas) a) Find the Capitalized Cust of an asset for n=5 years when Ao = $ 140,000 c(t) - $ 12,000 t, r=.04. b) Find the capitalized cos of an asset forever $ 140, 000 cit)= $12,00o t, r=.04. %3D
A) is the annual Cast of mantenance Cin dollas) a) Find the Capitalized Cust of an asset for n=5 years when Ao = $ 140,000 c(t) - $ 12,000 t, r=.04. b) Find the capitalized cos of an asset forever $ 140, 000 cit)= $12,00o t, r=.04. %3D
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![The capitalized Čost A of an asset is given by
A= Ao t c(t) e-** dt
%3D
Where
A is He onginal investment
t is the time in years
r3 the anneal interest rate Gn decimal form) compounded Coine ously, and
A) is the annual
Cast of mantenance Cin dollacs)
a) Find the capitalized Cust of an asset for n=5 years when
A = $ 140,000
c(t) = $ 12,000 t ,
T:.04.
%3D
Cost
b) Find the capitalized cosp of an asset forever
cit)= $12,000 t,
r:.04.
Ao = $
140,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7ac6e00-49cc-4b6d-8228-410a1f2ad862%2Fbb5bb999-694c-44c5-8e9e-4f8096ed5911%2Fg8xe89b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The capitalized Čost A of an asset is given by
A= Ao t c(t) e-** dt
%3D
Where
A is He onginal investment
t is the time in years
r3 the anneal interest rate Gn decimal form) compounded Coine ously, and
A) is the annual
Cast of mantenance Cin dollacs)
a) Find the capitalized Cust of an asset for n=5 years when
A = $ 140,000
c(t) = $ 12,000 t ,
T:.04.
%3D
Cost
b) Find the capitalized cosp of an asset forever
cit)= $12,000 t,
r:.04.
Ao = $
140,000
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