Final answer:
To calculate the capitalized cost of machinery, one must add the initial purchase price to operational expenses like licenses and maintenance. The total of the license and projected maintenance expenses for the first year is $1,750, excluding the purchase price of the machinery.
Step-by-step explanation:
The total capitalized cost of machinery, based on the provided information, would be calculated by adding the initial cost of the machine and the additional expenses related to its operation within the first year. This includes any licenses required for operation and the projected maintenance costs. Since the examples provided discuss various scenarios for the cost of labor and machines, and costs related to technology, we can deduce that the licensing and maintenance costs must be considered alongside these capital expenditures.
If we only focus on the annual city license and the routine maintenance, the total cost of these expenses is $500 for the license plus $1,250 for maintenance, equating to $1,750. However, this does not include the initial purchase price of the machinery, which is not specified in the question. If available, the purchase price should be added to this sum to obtain the complete capitalized cost.