Question: A firm requires a crane which costs $80,000 and has an estimated salvage value of $10,000 at the end of a 6-year operating life. If

A firm requires a crane which costs $80,000 and has an estimated salvage value of $10,000 at the end of a 6-year operating life. If the firm uses the rate of interest as 20% for the project evaluation, how much must be earned on capital recovery basis so that the firm recovers its invested capital plus earns a return on the capital committed to the equipment during its lifetime?

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