Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every 6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year.
Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every 6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year.
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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Can someone please help me to solve the following question in excel with a file laid out like this please and thank you!!!!
Transcribed Image Text:Find the capitalized cost of a present cost of $310,000, annual costs of $50,000, and periodic costs every
6 years of $80.000 (starting from end of year 6) forever. Use an interest rate of 6% per year. -
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Transcribed Image Text:4
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6
7
8
19
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13
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A
0
1
2
4
5
6
7
8
Infinite life time
Years
First Cost
CC1
CC2
CC3
Total
Annual Cost
Recurring Cost
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