Htc started as an original equipment manufacturing firm (oem) for brand-name mobile device companies. later, it started offering
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Answer:
The capitalized cost will be "784,592".
Explanation:
The given values are:
Initial cost = $500,000
Annual operating cost = $20,000
Interest, i = 12% i.e., 0.12
Effective Two year interest rate, i₂ =
=
As we know,
Now on putting the estimated values in the above expression, we get
⇒
⇒
⇒
So that the above is the right answer.