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Compare the cost of the two projects shown below on the basis of their Capitalized costs. Use an interest rate of 10% per year.

Project C Project D

First Cost, $ -50,000 -250,000

Maintenance cost, $/year -10,000 -3,000

Salvage Value, $ 2,000 25,000

Life, years 4 ∞

Financial Management, Finance

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