Benefit to cost ratio value at interest rate

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1. The following information has been taken from the financial statements available for the ABC Company. Determine the net income.

Accounts Pavable $4.000

Accounts Receivable $12,000

lncome Taxes $6,000

Owner's Eouifu $75.000

Co$ of Goods Sold $42,000

Overhead Expense $10,000

Sales Revenue $80,000

a. $34,000

b. $30,000

c. $ 18,000

d. $22,000

e. $26,000

2. The initial cost of a federal highway project is $4 million. After deducting all maintenance expenses, benefits of $250,000 per year during its 20-year life have been identified. The Benefit to Cost Ratio (BCR) value at an interest rate of 6oh per year is closest to:

a. 0.12

b. 0.75

c. 0.86

d. 1.0

e. 1.36

Reference no: EM132061227

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