15. Dune Ltd is considering a propext that will require the use of a crane that cost $600,000 when it was acquired four years ago and which has a current carrying amount (statement of financial position vahe) of $370,000 If the project is not undertaken, the crane could be sold for $180,000 or it could be used for another project. If it is used for the other project, the business will not have to purchase another crane for $250,000. The business uses the net present value (NPV) method to appraise investment projects. What is the relevant cost of the machine when calculating the NPV of the project? a. $600,000 b. $370,000 c. $250,000 d. $180,000 16. Which one of the following methods of investment appraisal uses annual profits (losses) rather than annual cash flows when evaluating investment opportunities? a. Net present value b. Accounting rate of return c. Payback period d. Internal rate of return 17. The economic order quantity (EOQ) for inventories can be calculated using the following equation: EOQ = (2WXY) What does Y represent? a. Cost of placing an order I b. Annual demand for the item of inventories C. Cost of holding one unit of inventories for one year d. Cost of delivering one unit of inventories to a customer