During the first quarter of the operating year, Computer Corp began construction of its new building at a cost of $60,000,000. The building will initially be financed with 30% internal equity (9% cost of equity) with the remainder from a $30,000,000 construction loan (three annual $10,000,000 payments plus interest at 6%) and its general debt facilities (8% weighted average interest rate.) Assuming that Computer incurred average accumulated expenses of $54,000,000 pertaining to the building construction during the year and had actual borrowing costs of $2,440,000, what amount of capitalized interest cost would be recognized by the company at year-end

Correct  cos(α - β) = 140/221

Step-by-step explanation:

cosα = ±√(1 - sin²α) => cosα = ±√(1 - (-5/13)²) = ±√(1 - (25/169)  

cosα = ±√(169 -25)/169 = ± √144/169

cosα = ± 12/13  since it is given that α (alpha) ends in the third quadrant

we choose  cosα = - 12/13

we know that is  tanβ = sinβ/cosβ = - 8/15 or sinβ : cosβ = 8 : 15 =>

sinβ = 8k and cosβ = 15k  where k is the coefficient of proportionality

we know the basic trigonometric equality

sin²β + cos²β = 1    when we replace the coefficients we get

(8k)² + (15k)² = 1 => 64k² + 225k² = 1 => 289k² = 1 => k² = 1/289 =>

k = 1/17   now we get sinβ and cosβ

since it is given that  β (beta) ends in the second quadrant

sinβ = 8/17 and cosβ = - 15/17

As we know it is:

cos(α - β) = cosα cosβ + sinα sinβ = - 12/13 · (- 15/17) + (- 5/13) · 8/17 =>

cos(α - β) = 180/221 - 40/221 = 140/221

cos(α - β) = 140/221

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