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Given that i = 10% per year and the data below: Alternative Project A First Cost($) -50,000 Annual Cost ($/yr) -20,000 Salvag**The answers presented below were calculated using the appropriate factors from interest tables including all their decimal

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Answer #1

Capital recovery = -50000 * (A/P, 10%,12) + 10000 * (A/F, 10%,12)

= -50000 * 0.146763 + 10000 * 0.046763

= -6870.53

First option is correct answer

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