Finance
1. What is the capital recovery cost for a machine costing $604,800 with a life of 12 years and a salvage value of 14% of the initial cost? The rate used by the firm is 10% per year compounded weekly.
Group of answer choices
- $73,871
- $74,706
- $87,136
- $108,748
2. What is the initial cost of a machine with a life of 8 years that has a salvage value of $99,500 and a capital recovery cost of $65,000 per year? The firm uses a rate of 7% per year compounded quarterly.
Group of answer choices
- $333,745
- $442,465
- $567,937
- $719,566
3. What is the NPW for a machine with the following details:
APR (Nom / y) 9% p y c m
Initial cost ($175,000)
Salvage value 14% of initial value
First year cost ($62,000)
Increase in cost 4% p y
First year revenue $90,000
Increase in revenue 8% p y
Life of machine 10 years
Group of answer choices
- $93,398
- $156,135
- $233,578
- $325,750