The capital recovery cost (CR) over the 10-year lifetime of a piece of equipment is $5730 at an interest rate of 15%. It does not have any yearly maintenance or operation costs. If the equipment is used for 1500 hours per year, what would be the cost per hour of operation of the machine over its lifetime?
The capital recovery cost (CR) over the 10-year lifetime of a piece of equipment is $5730 at an interest rate of 15%. It does not have any yearly maintenance or operation costs. If the equipment is used for 1500 hours per year, what would be the cost per hour of operation of the machine over its lifetime?
Chapter1: Financial Statements And Business Decisions
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![The capital recovery cost (CR) over the 10-year lifetime of a piece of equipment is $5730 at an
interest rate of 15%. It does not have any yearly maintenance or operation costs. If the equipment
is used for 1500 hours per year, what would be the cost per hour of operation of the machine over
its lifetime?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F196da36b-8dec-4c41-ab24-c2dd1b28728e%2F7a3818f3-dc66-4dc6-9758-6b0b04b2c7ae%2Fdfc0wj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The capital recovery cost (CR) over the 10-year lifetime of a piece of equipment is $5730 at an
interest rate of 15%. It does not have any yearly maintenance or operation costs. If the equipment
is used for 1500 hours per year, what would be the cost per hour of operation of the machine over
its lifetime?
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