Question
A machine which costs $100 000 when new has a lifetime of 15 years and a salvage value equal to 20% of its original cost.
A machine which costs $100 000 when new has a lifetime of 15 years and a salvage value equal to 20% of its original cost. Determine the capital recovery for this machine, if the interest rate is 10% per year, compounded annually. [Answer is given but i need an explanation as to how to get it] ANSWER: $12 517.60 per year
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
