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?
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...
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F24a516b7-5bcc-4a68-acb9-aeb9d30fb7fe%2F50860bac-3d2a-4d43-b1ef-390145822469%2Fu64upbd_processed.jpeg&w=3840&q=75)
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
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