A parking garage has a capital investment cost of $2.1 million (not including land). One year later $1.2 million will be spent on finishing work on the garage. It will cost $2 million to tear down and dispose of the garage at the end of its 25-year useful life. If the MARR is 25% per year, what is the capital recovery cost of the garage?

A parking garage has a capital investment cost of $2.1 million (not including land). One year later $1.2 million will be spent on finishing work on the garage. It will cost $2 million to tear down and dispose of the garage at the end of its 25-year useful life. If the MARR is 25% per year, what is the capital recovery cost of the garage?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22P

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