Question 16

15. maintenance at a cost of $50.000 per year during its 20 year life. If benefits of $3 The initial cost of a federal highway project is $4 million. The road will require 00,000 per year have been identified, the Benefit to Cost Ratio (BCR) value at an interest rate of 6%, per year is closest to: (5 Pts) a. 0.72 B.C = Benefits / total cost 0.75 c. 0.88 d. 1.0 e. 1.36 A machine costs $100,000 when new has a 15 year lifetime and a salvage value equal to 20% of its original value. The capital recovery costs. interest rate of 8% 16. based on an per year, compounded annually is closest to: (4 Pts) a. $12,518 b. $12,833 c. $13,777 d. $10,946 e. $21,111 MMS Corp. borrows $2,350,000 today for a new building. The loan is an equal principal payment loan with an APR of 7.12% compounded monthly. Payments are due monthly and the term of the loan is 8 years. The current portion of debt in month 13 is closest to: (5 Pts) 17. a. $302,650 b. $293,750 c. $288,560 d. $275,660 e. $261,111