Assume you are investigating buying one of two different robots. The annual benefits are unknown (but equal between the alternatives), and the costs and salvage value are listed below. Which should be selected based on an annual worth comparison at an interest rate of 10% per year? Robot A Robot B First cost ($10,000) ($12,000) Maintenance cost/year ($1,000) ($2,400) Salvage value $1,500 $2,000 Life, years 3 4.

 a) What is the Capital Recovery cost for Robot A? 

b) What is the Capital Recovery cost for Robot b

Answer rating: 100% (QA)

The Capital Recovery Cost CRC is calculated using the following formula textCRC P AP i n ight Where ... View the full answer