Question: At what rate will both projects be equally attractive? Machine A Machine B Year Initial Cost Salvage Benefits Annual Costs Initial Cost Salvage Benefits Annual
At what rate will both projects be equally attractive?
| Machine A | Machine B | |||||||
| Year | Initial Cost | Salvage | Benefits | Annual Costs | Initial Cost | Salvage | Benefits | Annual Costs |
| 0 | ($1,250,000) | ($1,880,000) | ||||||
| 1 | $252,000 | ($161,250) | $776,000 | ($160,800) | ||||
| 2 | $269,640 | ($166,088) | $642,320 | ($165,624) | ||||
| 3 | $288,515 | ($171,070) | $550,482 | ($170,593) | ||||
| 4 | $308,711 | ($176,202) | $460,616 | ($175,711) | ||||
| 5 | $330,321 | ($181,488) | $492,859 | ($180,982) | ||||
| 6 | $254,000 | $353,443 | ($186,933) | $385,680 | $527,359 | ($186,411) | ||
Group of answer choices
14%
19%
29%
55%
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