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Capital Recovery Factor Tables Capital Recovery Factors (CRFs) are numbers which are multiplied by a loan amount in order to determine the annual amount required to pay off a loan. The equation to.

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Equation 1-6 The factor [i(1+i)n]/[(1+i)n−1] is called the “capital-recovery factor” and is designated by A/Pi,n. This factor is used to calculate a uniform series of end of period payment, A that are equivalent to present single sum of money P.

What is the capital recovery factor? The capital recovery factor is the ratio used to determine the present value of a series of equal annual cash payments. The payments could be made weekly, monthly, quarterly, yearly, or at any other regular interval of time, and are commonly known as annuities.

Example: For i = 7% and N = 5 years, the capital recovery factor is equal to 0.2439. A $1000 loan at 7% interest could therefore be paid back with five annual payments of $243.90. The present value of the five annual payments of $243.90 is $1000.

The CRF is equal to [r·(1+r)T]/[(1+r)T–1], where r is the appropriate discount rate and T is the economic lifetime of the NPP. The appropriate discount rate is usually a weighted average cost of capital (debt and equity), consistent with the discount rate for calculating IDC.

What is the capital recovery factor? The capital recovery factor is the ratio used to determine the present value of a series of equal annual cash payments. The payments could be made weekly, monthly, quarterly, yearly, or at any other regular interval of time, and are commonly known as annuities.

Question: Q1) The value of capital recovery factor at 15% p.a. discreate compounding for 4 years is 0.35.

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© Copyright 1997-2025
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232