A library shelving system has a first cost of $21,000 and a useful life of 15 years. The annual maintenance is expected to be $2,200. The annual benefits to the library staff are expected to be $9,100. If the effective annual interest rate is 9.5%, what is the benefit-cost ratio of the shelving system? 0303

A library shelving system has a first cost of $21,000 and a useful life of 15 years. The annual maintenance is expected to be $2,200. The annual benefits to the library staff are expected to be $9,100. If the effective annual interest rate is 9.5%, what is the benefit-cost ratio of the shelving system? 0303

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EA: Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years....

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