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Answer questions 5 to 7 with the following information You invest in a piece of equipment costing $35,000. The equipment will be used for two
Answer questions 5 to 7 with the following information You invest in a piece of equipment costing $35,000. The equipment will be used for two years, at the end of which time the salvage value of the machine is expected to be $12,000. The machine will be used for 2,000 hours during the first year and 3,000 hours during the second year. The expected savings associated with the use of the piece of equipment will be $32,000 during the first year and $43,000 during the second year. If your interest rate is 12%. 5. What is the capital recovery cost (approximately)? O $18,095 O $15,049 O $9,054 O None of the above QUESTION 6 What is the annual recovery cost (approximately)? O A $17,810 O B. $11,356 OC $22,140 OD. None of the above QUESTION 7 What would be the net savings generated per machine hour (approximately)? O A 8.96 OB.3.45 OC.5.67 OD. None of the above
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