Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I want you to make a cash flow diagram on the given problem below. Only the Cash Flow Diagram (CFD), i am not asking you to solve it.
![9. A machine which costs $100 000 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. A= $12,517.60](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5608f740-52ce-469d-b2e3-0dc077d9c0c1%2Fadfc3cb4-b84d-41a6-9d31-6c8fa8be6b0f%2F7y4c2l_processed.png&w=3840&q=75)
Transcribed Image Text:9. A machine which costs $100 000 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. A= $12,517.60
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