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FITCO is considering the purchase of new equipment. The equipment costs $350,000, and an additional $110,000 is needed to install it.

FITCO is considering the purchase of new equipment. The equipment costs $350,000, and an additional $110,000 is needed to install it. The equipment will be depreciated straight-line to zero over a 5-year life. The equipment will generate additional annual revenues of $265,000, and it will have annual cash operating expenses of $83,000. The equipment will be sold for $85,000 after 5 years. An inventory investment of $73,000 is required during the life of the investment. The company tax rate is 30 percent, and its cost of capital is 10 percent. What is the project NPV?

There is the solution of the question above but i do not know how to find the capital recover at year 5 which is 59,500.

Could you pls help me with this problem?

thank you!

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