4. An actuarial scientist (the appraiser) with an insurance company in GA believes that the best estimate for the book value of a car totaled in an accident that has gone through n years of depreciation is to use weighted values from the MARCS and the Straight Line (SL) depreciation methods. His weighted model is given by: n(BVnm) + (n 1)(BVESL) BVA = n + 2 Where: BVn is his calculated Book value after year n. BVnm is the Book Value after n years from the MACRS and BV s is the Book Value after n years from the Straight-Line method. Right after its third year in operation, a vehicle that was initially purchased at $55,000 was involved in an accident and was totaled. What will be the appraiser's book value if he assumes a salvage value of $5,000 after five years? 5 a. What is the payback period (Be exact to 1 decimal place) of the cash flow below? 2300 2100 1900 1700 1900 1700 1500 1500 lo 1 2 3 4 5 6 7 8 9 10 11 12 10000 5 b. A project has the following costs and benefits. What is the payback period (Be exact to 1 decimal place)? Year Cost Benefits 0 1-3 30,000 15,000 each year 12,000 each year 7,000 4 5-10 3,000 11,000 each year