excelo inc. just purchased a new machine for $85000. the machine will generate savings of $25000 per year for the next 5 years. each year the machine will run for 4000 hours. the salvage value at the end of 5 years will be $34000. assume an interest rate of 10% what is the capital recovery annual cost? what is the equivalent net savings per machine running hour for Excelo?

excelo inc. just purchased a new machine for $85000. the machine will generate savings of $25000 per year for the next 5 years. each year the machine will run for 4000 hours. the salvage value at the end of 5 years will be $34000. assume an interest rate of 10% what is the capital recovery annual cost? what is the equivalent net savings per machine running hour for Excelo?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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