What is the capitalized worth

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Reference no: EM132025070

Question: The original cost of a certain asset is $1,180. It has to be replaced (at this cost) every 4 years; the salvage value is negligible. Annual revenues and expenses are expected to be $435 and $366, respectively, over an indefinite period of time. The interest rate is 4.5%. What is the capitalized worth?

Reference no: EM132025070

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