In: Economics
The property appraisal district for Marin County has just installed new software to track residential market values for property tax computations. The manager wants to know the total equivalent cost of all future costs incurred when the three county judges agreed to purchase the software system. If the new system will be used for the indefinite future, find the present worth (or capitalized cost) of the system.
The system has an installed cost of $158,721 and an additional cost of $60,394after 10 years. The annual software maintenance contract cost is $9,856 for the first 4 years and $13,170 thereafter. In addition, there is expected to be a recurring major upgrade cost of $21,247 every 13 years. Assume that 5% per year for county funds.
The Capitalized cost (CC) of the project is