Calculate the ratio of internal capital recovery

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Reference no: EM132016054

An investment of $ 31,000 is made to improve some processes, its useful life is 5 years, this investment generates a saving of $ 8,000 per year. Presume that the market value drops by $ 5000 per year.

a. Calculate the present value if the MARR is 10% annual compound

b. Calculate the equivalent annuity if the MARR is 10% annual compound

c. Calculate the ratio of internal capital recovery

d. Calculate the capital recovery period if the MARR is 10% annual compound

Reference no: EM132016054

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