Accounting

A permanent flood control dam is expected to have an initial cost of $2.8 million and an annual upkeep cost of $20,000. In addition, minor reconstruction will be required every 5 years at a cost of $200,000. As a result of the dam, flood damage will be reduced by an average of $180,000 per year. Using an interest rate of 6% per year, the conventional B/C ratio will be closest to:

a. 0.46

Don't use plagiarized sources. Get Your Custom Essay on
Accounting
Just from $13/Page
Order Essay

b. 0.81

c. 0.97

d. 1.06

The four mutually exclusive alternatives shown on the next page are compared using the B/C method. The alternative to select is:

a. J

b. K

c. L

d. M

If the market interest rate is 16% per year when the inflation rate is 9% per year, the real interest rate is closest to:

a. 6.4%

b. 7.3%

c. 9.4%

d. 16.1%

The cost of an F-150 pick-up truck was $29,350 three years ago. If the cost increased only by the inflation rate and the price today is $33,015, the inflation rate was closest to:

a. 3%

b. 4%

c. 5%

d. 6%

Place Order
Grab A 14% Discount on This Paper
Pages (550 words)
Approximate price: -
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Try it now!

Grab A 14% Discount on This Paper

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.