Determine the capital recovery rate per year of a company

(Last Updated On: November 5, 2020)

Determine the capital recovery rate per year of a company

Problem Statement: ME Board October 1995

A company must relocate one of its factories in three years. Equipment for the loading dock is being considered for purchase. The original cost is P20,000, the salvage value of the equipment after three years is P8,0000. The company’s rate of return on the money is 10%. Determine the capital recovery rate per year.

  • A. P5,115
  • B. P4,946
  • C. P5,625
  • D. P4,805

Problem Answer:

The capital recovery rate per year of a company is P5,625.

Solution:

Show
Determine the capital recovery rate per year of a company

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

DOWNLOAD PDF / PRINT
Print Friendly, PDF & Email
Please do Subscribe on YouTube!

P inoyBIX educates thousands of reviewers and students a day in preparation for their board examinations. Also provides professionals with materials for their lectures and practice exams. Help me go forward with the same spirit.

“Will you subscribe today via YOUTUBE?”

Subscribe

Add Comment

PinoyBIX Engineering. © 2014-2020 All Rights Reserved | How to Donate? | Follow me on Blogarama | Jabeetee Shop DMCA.com Protection Status