2. At an interest rate of 10% per year, calculate the capitalized cost of $10,000 (cost) in year 0, $5000 (cost) per year starting in year 1 thereafter forever, and $1000 (cost) per year thereafter (annual cost started from year 6 and continues till the end) forever. (a) $-29,652 (b) $-35,163 (c) $ -66,209 (d) $-43,221 Show your hand calculations and solve this question in excel. Show your cash flows in excel

2. At an interest rate of 10% per year, calculate the capitalized cost of $10,000 (cost) in year 0, $5000 (cost) per year starting in year 1 thereafter forever, and $1000 (cost) per year thereafter (annual cost started from year 6 and continues till the end) forever. (a) $-29,652 (b) $-35,163 (c) $ -66,209 (d) $-43,221 Show your hand calculations and solve this question in excel. Show your cash flows in excel

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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