The capitalized cost of any investment may be determined using the equation P = A/i where P is the capitalized cost, A is the annual amount and i is the interest rate.

Question

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The formula P = A/i is used to calculate the capitalized cost of an investment, where P represents the present value of a perpetual series of annual payments A, discounted at an interest rate i.

The Capitalized Cost of Any Investment May Be Determined Using