An automaton asset with a high first cost of $10 million has required capital recovery (cr) of $1,985,000 per year. the correct interpretation of this cr value is that?
a. the owner must pay an additional $1,985,000 each year to retain the asset. b. each year of its expected life, a net revenue of $1,985,000 must be realized to recover the $10 million first cost and the required rate of return on this investment. c. the services provided by the asset will stop if less than $1,985,000 in net revenue is reported in any year. d. each year of its expected life, a net revenue of $1,985,000 must be realized to recover the $10 million first cost.
