The first cost of a certain piece of equipment is 35,000 OMR. It will have an annual operating cost of 15,000 OMR and a 5,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 10% per year. Find the capitalized cost of the equipment. a) 212,113.21 OMR b) 234,139.24 OMR c) 152,110.36 OMR d) 112,210.21 OMR

The first cost of a certain piece of equipment is 35,000 OMR. It will have an annual operating cost of 15,000 OMR and a 5,000 OMR salvage value (scrap value) after its 5-year life, at an interest rate of 10% per year. Find the capitalized cost of the equipment. a) 212,113.21 OMR b) 234,139.24 OMR c) 152,110.36 OMR d) 112,210.21 OMR

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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Question

The first cost of a certain piece of equipment is 35,000 OMR. It will have an annual operating
cost of 15,000 OMR and a 5,000 OMR salvage value (scrap value) after its 5-year life, at an
interest rate of 10% per year. Find the capitalized cost of the equipment.
a) 212,113.21 OMR
b) 234,139.24 OMR
c) 152,110.36 OMR
d) 112,210.21 OMR

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