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30 April, 11:44

Capital recovery (CR) is the equivalent annual cost of owning the asset plus the return on the initial investment. In other words, it is the equivalent annual amount that a machine, process, or system must earn (revenue) each year to just recover the initial investment plus the stated rate of return over its expected life.

a. True

b. False

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Answers (2)
  1. 30 April, 13:03
    0
    a. True

    Explanation:

    It includes the equivalent amount initially invested plus interest rate that one can earn the funds by investing elsewhere.
  2. 30 April, 13:09
    0
    True

    Explanation:

    Capital recovery (CR) can also be defined as the equivalent amount that an asset, system or process must earn on a yearly basis to recover mainly the cost of acquiring it, and a state interest in the course of its expected useful life. When calculating the Capital Recovery of an asset, we must consider its salvage value.
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