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Original Investment tt Is the Time in Years rr Is the Annual Interest Rate Compounded Continuously, And

Question 127

Multiple Choice

 Suppose the capitalized cost C is given by C=C0+0nc(t) endt, where C0 is the \text { Suppose the capitalized cost } C \text { is given by } C = C _ { 0 } + \int _ { 0 } ^ { n } c ( t ) e ^ { - n } d t \text {, where } C _ { 0 } \text { is the } original investment, tt is the time in years, rr is the annual interest rate compounded continuously, and c(t) c ( t ) is the annual cost of maintenance. Find the capitalized cost CC of an asset forever if
C0=625,000,c(t) =23,500(1+0.07t) C _ { 0 } = 625,000 , c ( t ) = 23,500 ( 1 + 0.07 t ) , and r=0.05r = 0.05 . Round your answer to the nearest dollar.


A) 681,400
B) 1,753,4001,753,400
C) 1,799,5111,799,511
D) 681,420
E) 1,753,0001,753,000

Correct Answer:

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