$7\mathrm{.}25$ A machine which costs $$100000$ when new has a lifetime of $15$ years and a salvage value equal to $20\%$ of

its original cost. Determine the capital recovery for this machine, if the interest rate is $10\%$ per year,

compounded annually. Ans, $$12517\mathrm{.}60$ per year

$7\mathrm{.}26$ Repeat Problem $7\mathrm{.}25,$ using a salvage value equal to $5\%$ of the machine's original cost.

Ans. S$12989\mathrm{.}56$ per year