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You'll purchase a food truck today for $85000 and in 6 years will sell it for $18500. For an interest rate of 8%, what is the Capital Recovery amount for this equipment?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 5P

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You'll purchase a food truck today for $85000 and in 6 years will sell it for $18500. For an interest rate of 8%, what is the Capital Recovery amount for this equipment? *beginning with a cash-flow diagram might help

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