Question: A machine which costs $100 000 when new has a lifetime of 15 years and a salvage value equal to 20% of its original cost.

A machine which costs $100 000 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. [Answer is given but i need an explanation as to how to get it] ANSWER: $12 517.60 per year

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