A specially built computer system has just been purchased, Business Economics

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A specially built computer system has just been purchased

A specially built computer system has just been purchased by Progress Greenhouse Products to monitor moisture level and to control drip irrigation in hydroponics beds that grow cluster tradiro tomatoes. The system's first cost was $97,000 with an AOC of $10,000 and a salvage value on the international market of $20,000 after 4 years, when Progress expects to sell the system. Determine the capitalized cost (i.e. forever) at 12% per year and explain its meaning.

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