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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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