What is the capital recovery (CR) cost of the project? Assume Cash Flow First cost, S Annual cost, S per year Revenue, S per year -1,000,000 -10,000 110,000 Salvage value, S Life, years

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...
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What is the capital recovery (CR) cost of the project? Assume MARR = 6% per year.
Cash Flow
First cost, S
Annual cost, S per year
Revenue, S per year
Salvage value, S$
Life, years
-1,000,000
-10,000
110,000
00
Transcribed Image Text:What is the capital recovery (CR) cost of the project? Assume MARR = 6% per year. Cash Flow First cost, S Annual cost, S per year Revenue, S per year Salvage value, S$ Life, years -1,000,000 -10,000 110,000 00
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