An automation asset with a high first cost of $10 million has a capital recovery (CR) of $1,985,000 per year. The correct interpretation of this CR value is that:

a. the owner must pay an additional $1,985,000 each year to retain the asset.

b. each year of its expected life, a net revenue of $1,985,000 must be realized to recover the

$10 million first cost and the required rate of return on this investment.

c. each year of its expected life, a net revenue of $1,985,000 must be realized to recover the

$10 million first cost.

d. the services provided by the asset will stop if less than $1,985,000 in net revenue is reported in any year.