What is the capital recovery cost for a machine costing $604,800 with a life of 12 years and a salvage value of 14% of the initial cost?
Finance
What is the capital recovery cost for a machine costing $604,800 with a life of 12 years and a salvage value of 14% of the initial cost? The rate used by the firm is 10% per year compounded weekly.
Group of answer choices
$73,871
$74,706
$87,136
$108,748
What is the initial cost of a machine with a life of 8 years that has a salvage value of $99,500 and a capital recovery cost of $65,000 per year? The firm uses a rate of 7% per year compounded quarterly.
Group of answer choices
$333,745
$442,465
$567,937
$719,566
What is the NPW for a machine with the following details:
APR (Nom / y) 9% p y c m
Initial cost ($175,000)
Salvage value 14% of initial value
First year cost ($62,000)
Increase in cost 4% p y
First year revenue $90,000
Increase in revenue 8% p y
Life of machine 10 years
Group of answer choices
$93,398
$156,135
$233,578
$325,750