Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 50

All the following statements about the capital recovery amount for an alternative are false except:
a) Annual revenue can be no more than this amount, if the alternative is selected.
b) A monetary estimate of new capital funds required each year for the life of the alternative.
c) An amount of revenue required to recover the first cost plus a stated return over the life of the alternative.
d) Does not consider the salvage value, since it is returned at the end of the alternative's life.