The capitalized cost c of an asset is computed by the formula c = c0 + ,where c0 is the initial cost of the asset, L is the lifetime (in years), r is the interest rate (compounded continuously), and m(t) is the annual cost of maintenance. Find the capitalized cost under the given assumptions.c0 = $700,000, r = 4%, m(t) = 25,000 + 100t, L = 10

A. $915,921
B. $909,897
C. $906,874
D. $898,625


Answer: B

Mathematics

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