The Emerson Electronics Company just purchased a soldering machine to be used in its assembly cell for

Question:

The Emerson Electronics Company just purchased a soldering machine to be used in its assembly cell for flexible disk drives. The soldering machine cost $350,000. Because of the specialized function it performs, its useful life is estimated to be five years. It is also estimated that at that time its will be $60,000. What is the capital recovery cost for this investment if the firm's interest rate is 15%?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...