n be no more than this anm nue required to recover the ative. te of new capital funds rec the salvage value, since ir

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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All the following statements about the capital recovery amount for an alternative are false
except:
O a
Annual revenue can be no more than this amount, if the alternative is selected.
An amount of revenue required to recover the fi rst cost plus a stated return over
O b.
the life of the alternative.
A monetary estimate of new capital funds required each year for the life of the
Oc.
alternative.
Od.
Does not consider the salvage value, since it is returned at the end of the
alternative's life
Transcribed Image Text:All the following statements about the capital recovery amount for an alternative are false except: O a Annual revenue can be no more than this amount, if the alternative is selected. An amount of revenue required to recover the fi rst cost plus a stated return over O b. the life of the alternative. A monetary estimate of new capital funds required each year for the life of the Oc. alternative. Od. Does not consider the salvage value, since it is returned at the end of the alternative's life
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