User:Kathleenmpainter

Capital Recovery Costs
Capital recovery costs represent an alternative to calculating depreciation and interest costs for a multi-year investment. This value is generally slightly higher than the sum of the average annual depreciation and interest values calculated separately because capital recovery assumes that interest charges are computed on values at the beginning of each year, and interest charges are compounded annually. An amortization factor is needed for the number of years and the interest rate you are using. This can be found by consulting amortization tables or calculating the capital recovery factor.

The capital recovery amount is the annual payment that will recover the initial investment lost through depreciation plus interest on the investment.