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 = $400,000, r = 5%, m(t) = 50,000 + 2000e0.01t, L = 40
A. $1,344,569.89
B. $1,244,569.89
C. $1,384,569.89
D. $1,304,569.89
Answer: D
Mathematics
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