Question:
Capitalized cost comparison method is used for comparing alternatives having:
Capitalized cost comparison method is used for comparing alternatives having:
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Use capitalized cost analysis for decisions involving perpetual or very long-term assets.
Updated On: Jan 17, 2026
- High initial cost
- High maintenance cost
- High service life
- High running cost
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The Correct Option is C
Solution and Explanation
The capitalized cost method evaluates projects or alternatives that last indefinitely. It is used to determine the long-term cost-effectiveness of alternatives with high service life.
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