Question
An investment has a first cost of 285,000 QAR, an annual operating cost of 5,000 QAR, a salvage value of 50,000 QAR after 10 years.
An investment has a first cost of 285,000 QAR, an annual operating cost of 5,000 QAR, a salvage value of 50,000 QAR after 10 years. During this time, the machine generated an average annual revenue of 49,500 QAR. a) What is the capital recovery amount if the interest is 10% per year? b) The investment has been recovered? Yes or No and Why?
"Engineering Economics"
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Managerial Economics and Business Strategy
Authors: Michael Baye, Jeff Prince
9th edition
9781259896422, 1259290611, 1259896420, 978-1259290619
