9. construction equipment costs $40,000 today. If the market interest rate was 1

Question

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:

Explanation / Answer

9.

cost 10 years ago=40000/(1+6%)^10

=22335

the above is the answer

we do only one question based on Chegg rule.

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