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An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4 -year life.
An asset with a first cost of $20,000 has an annual operating cost of $12,000 and a $4000 salvage value after its 4 -year life. The project will be needed for 6 years. This means that the asset will have to be repurchased and kept for only 2 years. a. Determine the capital recovery amount over the 4-year life if a MARR of 10% per year is required. b. What spreadsheet function displays a CR? Write the function for this situation. c. What must be the market value, M, of the repurchased 2-year-old asset for the annual worth to be the same as it is for one complete life cycle of the asset? Again, MARR is 10% per year
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