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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