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How much interest can be capitalized to the ocean liner

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Question - A shipbuilder is constructing an ocean liner for $394 million that will accommodate 650 passengers. The construction will take one year and will be funded as follows: January 1, $100 million; July 1, $100 million; September 1, $194 million. Construction interest for the ship is at 6%. How much interest can be capitalized to the ocean liner?

Reference no: EM133131130

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