As discussed in Section 6.2, either of the following two equations can be applied to determine the amount necessary to recover invested capital and a required return:

CR₁ = −P(A∕P,i,n) + S(A∕F,i,n) or
CR₂ = −[(P – S)(A/P,i,n) + S(i)]

For an alternative that has a first cost of $50,000 and a salvage value of $5,000 after its 5-year life, show that the capital recovery calculated using either of these equations is exactly the same. Use an interest rate of 10% per year.