1. A proposal is made to buy a machine for P 100,000. The expected service life is 10 yrs with zero salvage value. The capitalized cost is a P162,745 and the maintenance of P 16,274.00. What is the interest rate?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question
1. A proposal is made to buy a machine for
P 100,000. The expected service life is 10
yrs with zero salvage value. The capitalized
cost is a P162,745 and the maintenance of P
16,274.00. What is the interest rate?
А. 29.7%
В. 15.9%
C. 20 %
D. 25 %
2. A large sewer system will cost P180,000
annually. There will be favorable
consequence to the general public of
P520,000 annually, and adverse
consequence to a small segment of the
public of P60,000 annually. What is the
benefit cost ratio?
A. 2.56
В. 3.56
C. 4.56
D. 5.56
Transcribed Image Text:1. A proposal is made to buy a machine for P 100,000. The expected service life is 10 yrs with zero salvage value. The capitalized cost is a P162,745 and the maintenance of P 16,274.00. What is the interest rate? А. 29.7% В. 15.9% C. 20 % D. 25 % 2. A large sewer system will cost P180,000 annually. There will be favorable consequence to the general public of P520,000 annually, and adverse consequence to a small segment of the public of P60,000 annually. What is the benefit cost ratio? A. 2.56 В. 3.56 C. 4.56 D. 5.56
Expert Solution
trending now

Trending now

This is a popular solution!

video

Learn your way

Includes step-by-step video

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.