Compute the capitalized cost assuming an interest rate

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Cynthia Mitchell, superintendent at the Columbia landfill can purchase a used trash compactor for $150,000 and she expects that it still has a useful life of 5 years. At the end of 5 years, the compactor will be replaced by another identical compactor (Cynthia hopes to be so lucky.) Assuming that the City will own and operate a landfill for perpetuity and that they will need a compactor, compute the Capitalized Cost assuming an interest rate of 7 percent.

Reference no: EM13238714

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