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?

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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