5. A machine costs $50,000 to porchase. Salvage value . of machine after 5years - $8,000 Calculate the machines capital recovery cost LEUAC) at 10% 6. A company purchases manufacturing equipment for $100,000. After 10 years, the Salvage value is $ 12,000. the annual insurance cost is 5% of the Purchase price. Electricity cost is $800/year, Maintenance /parts $1,200/year. The effective annual interest rate is 10% per year. What is the present worth of the equipment if it is expected to Save the company $15,000/year