Solution: Determine the capital recovery rate per year of a company

(Last Updated On: December 10, 2017)

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:

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

div.feedburnerFeedBlock ul li {background: #E2F0FD;
list-style-type: none;
margin:0 0 5px 0px;
padding:5px 5px 5px 10px !important;
border: 1px solid #0080ff;
border-radius:8px;
-moz-border-radius:8px;
-webkit-border-radius:8px;

}

div.feedburnerFeedBlock ul li:hover {
background:#ffffff;
}

div.feedburnerFeedBlock ul li a{
color:#ffffff;
text-decoration:none;
}

div.feedburnerFeedBlock ul li a:hover {
text-decoration: underline;
color: #000000;
}
div #creditfooter{
display: none;
}

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

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

Solution: Determine the capital recovery rate per year of a company
Rate this:

Add Comment

© 2017 PinoyBIX Engineering. © 2017 All Rights Reserved | Donate
Basic Television - Grob TV  Chapter Exercises
Basic Television – Grob TV Chapter Exercises
Series of Multiple Choice Questions in Engineering Mathematics
Series of Multiple Choice Questions in Engineering Mathematics
Complete Practice Quiz in Electronic Devices and Circuit Theory
Complete Practice Quiz in Electronic Devices and Circuit Theory
Complete Practice Quiz in Data Communications and Networking
Complete Practice Quiz in Data Communications and Networking
Online Tool: Color Code Conversions
Online Tool: Color Code Conversions
Online Tool: Weight Measurement Conversions
Online Tool: Weight Measurement Conversions
Online Tool: Temperature Measurement Conversions
Online Tool: Temperature Measurement Conversions
Online Tool: Length Measurement Conversions
Online Tool: Length Measurement Conversions

Get FREE Review Course
in your inbox

Subscribe to our mailing list and get reviewers and updates to your email inbox.

Thank you for subscribing.

Something went wrong.