Civil Engineering - Engineering Economy - Discussion
Discussion Forum : Engineering Economy - Section 1 (Q.No. 36)
36.
The capital Recovery Factor (equal payments) of Capital Recovery Annuity is :
None of these.
Discussion:
1 comments Page 1 of 1.
Vaxoo said:
3 years ago
If I is an initial investment the uniform amount(A) the company needs to earn to repay the initial investment is a capital recovery annuity. if we bring I and A to the same year n. Then I(1+i)^n=A[(1+i)^n)-1]/i.
A/I = capital recovery factor which gives option A.
A/I = capital recovery factor which gives option A.
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