Determine the capital recovery based upon an interest rate

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A machine that costs $50,000 when new has a 10-year lifetime and a salvage value equal to 10% of its original value. Determine the capital recovery, based upon an interest rate of 8% per year compounded annually.

If O&M costs equal $2,000 per year and the machine can produce 3,000 units per year, what is the unit cost?

Reference no: EM131972265

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