Original Investment t Is the Time in Years r Is the Annual Interest Rate Compounded Continuously, And
Question 127
Question 127
Multiple Choice
Suppose the capitalized cost C is given by C=C0+∫0nc(t) e−ndt, where C0 is the original investment, t is the time in years, r is the annual interest rate compounded continuously, and c(t) is the annual cost of maintenance. Find the capitalized cost C of an asset forever if C0=625,000,c(t) =23,500(1+0.07t) , and r=0.05 . Round your answer to the nearest dollar.
A) 681,400 B) 1,753,400 C) 1,799,511 D) 681,420 E) 1,753,000
Correct Answer:
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