-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