A student buys a laptop for $1,500 which he hopes to resell upon completion of his degree The laptop has an estimated salvage value of $300 at the end of 3 years For an interest rate of 15 , find the equivalent annual cost of this investment using capital recovery with return ...

A student buys a laptop for $1,500 which he hopes to resell upon completion of his degree.

Question:

A student buys a laptop for $1,500 which he hopes to resell upon completion of his degree. The laptop has an estimated of $300 at the end of 3 years. For an interest rate of 15%, find the equivalent annual cost of this investment using capital recovery with return.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...