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Business, 26.10.2019 03:43 duxks

Two incinerators are being considered by a waste management company. design a has an initial cost of $2,500,000, has annual operating and maintenance costs of $800,000, and requires overhauls every 5 years at a cost of $1,250,000. design b is more sophisticated, including computer controls; it has an initial cost of $5,750,000, has annual operating and maintenance costs of $600,000, and requires overhauls every 10 years at a cost of $3,000,000. using a 5%/year interest rate, determine the capitalized cost for each design and recommend which should be chosen.

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