Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help me 9. construction equipment costs $40,000 today. If the market interest rate was 15% per year and cost has increased only by the inflation

Help me image text in transcribed
9. construction equipment costs $40,000 today. If the market interest rate was 15% per year and cost has increased only by the inflation rate of 6% per year, its cost 10 years ago was closest to: A. $71,600 B. $27,405 C. $22,335 D. $17,700 Formula used: 10. An alternative has the following cash flows: benefits $60,000 per year; disbenefits $25,000 per year annual equivalent of initial cost--$30,000: O&M costs of $10,000 per year. year, the modified B/C ratio is closest to: At an interest rate of 10% per A. 0.89 B. 0.83 C. 0.67 D. 0.64 Formula used

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions