-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
1.89 (Explain why this is the correct answer)
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?
$15,000
$9,000
$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?
$918 (Explain why this is the correct answer)
$875
$932
$855
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