Determine the capitalized cost of a permanent roadside historical marker that has a first cost of $78,000 and a maintenance cost of $3500 once every 5 years.

What will be an ideal response?


CC = -78,000 - 3500(A/F,8%,5)/0.08
= -78,000 - 43,750(0.17046)
= $-85,458

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