Question 16 A machine has an initial cost of $25,000 and an annual maintenance cost of $900. The life of the machine is ten years and its salvage value is $3,500. Assuming an effective annual interest rate of 8%, the capital recovery cost of the machine is most nearly $3287 $3825 $3665 $3484 Question 17 If the IRR of Alternative A is 16 percent, the IRR of Alternative B is 14 percent, and the MARR is 12 percent, which of the following statements is correct? Group of answer choices Alternative A is preferred over Alternative B. Alternative B is preferred over Alternative A. Not enough information is given to determine which alternative is preferred. Neither Alternative Anor Alternative B is acceptable. Question 18 You purchase a $15,000 bond with a bond rate of 6% per year payable semi-annually for two years. You pay $13,000 for the bond. Which of the following statements is correct? Group of answer choices The cash flows will be -$13,000, $450, $450, $450, $13,450, and the bond will earn more than 12 percent. The cash flows will be $13,000, $450, $450, $450, $15,400, and the bond will earn more than 12 percent. The cash flows will be - $13,000, $360, $360, $360, $13,450, and the bond will earn less than 12 percent. The cash flows will be - $13,000, $450, $450, $450, $15,400, and the bond will earn less than 12 percent