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An asset has the estimated salvage values for various lives, shown in the table below. For each possible life from 1 to 6 by 1,

An asset has the estimated salvage values for various lives, shown in the table below. For each possible life from 1 to 6 by 1, determine the capital recovery cost for MARR of 8%/year.

EOY 0 1 2 3 4 5 6
NCF (-$105,000) $30,000 $30,000 $30,000 $30,000 $30,000 $30,000
Estimated SV $105,000 $85,000 $65,000 $55,000 $45,000 $40,000 $37,000
Capital Recovery Cost $? $? $? $? $? $? $?

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