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-What is the benefit to cost ratio of the following project if the MARR is...

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Accounting

-What is the benefit to cost ratio of the following project if the MARR is 8%.

(Note:Consider salvage value as a cost - in other words, what is the cost of the equipment considering Initial Cost and Salvage Value)

Initial Cost $9,000

Annual Savings $1,900

Salvage Value $1,250

Life 15 years

1.84

1.80

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1.89 (Explain why this is the correct answer)

image

1.94

-A machine initially costing $25,000 will have a salvage value of $1,944 after five years. Using Double Declining Balance depreciation, what will the book value be after the third year?

image

$15,000

$9,000

image

$5,400 (Explain why this is the correct answer)

$3,240

-You have borrowed $5,000 and must pay it off in five equal annual payments. Your annual interest rate is 10%. How much interest will you pay in the first two years?

image

$918 (Explain why this is the correct answer)

image

$875

$932

$855

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