Determine the capital recovery for the machine in Problem 7.25, if the interest rate is 15% per year, compounded annually, and total operating and maintenance costs are $2000 per year. [answer is given but i need an explanation as to how to get to it] Answer: $16681.60 per year

7.25 A machine which costs S100 000 when new has a lifetime of 15 years and a salvage value equal to 20% of its original cost. Determine the capital recovery for this machine, if the interest rate is 10% per year, compounded annually. Ans. S12 517.60 per year