An energy efficient machine costs $300,000. today and has a life of 5 years. At the end of the five years, this machine can be sold to the open market with a salvage value of $150,000. If the effective annual interest rate is 10%, how much will it have to save every year in order to recover the initial capital investment? (Hint: Capital Recovery Formula) $54,570.0 $39,569.0 $67,482.0 $47,563.5 $41,610.5

An energy efficient machine costs $300,000. today and has a life of 5 years. At the end of the five years, this machine can be sold to the open market with a salvage value of $150,000. If the effective annual interest rate is 10%, how much will it have to save every year in order to recover the initial capital investment? (Hint: Capital Recovery Formula) $54,570.0 $39,569.0 $67,482.0 $47,563.5 $41,610.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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