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1. A čompany is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: A C First Cost Power per year Labor per year P24,000 1,300 11,600 2,800 P30,000 P1,360 9,320 1,900 P49,600 P2,400 4,200 1,300 P52,000 P2,020 2,000 Maintenance per year Taxes and insurance 700 3% 3% 3% 3% Estimated life 5 years 5 years 5 years 5 years Money is worth 17% before taxes to the company. Which machine should be chosen?

1. A čompany is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: A C First Cost Power per year Labor per year P24,000 1,300 11,600 2,800 P30,000 P1,360 9,320 1,900 P49,600 P2,400 4,200 1,300 P52,000 P2,020 2,000 Maintenance per year Taxes and insurance 700 3% 3% 3% 3% Estimated life 5 years 5 years 5 years 5 years Money is worth 17% before taxes to the company. Which machine should be chosen?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The question and the answers all I need is a solution Our subject is Engineering Economics in the lesson ECONOMIC STUDY METHOD
2. by Annual Cost method: Depreciation Machine A= P3,422 Machine B= P4,277 Machine C= P7,071 Machine D= P7,413 Total annual cost P23,922 P22,857 P24,891 P22,533
Transcribed Image Text:2. by Annual Cost method: Depreciation Machine A= P3,422 Machine B= P4,277 Machine C= P7,071 Machine D= P7,413 Total annual cost P23,922 P22,857 P24,891 P22,533
1. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: D. First Cost P24,000 1,300 11,600 P30,000 P1,360 P49,600 Power per year Labor per year P2,400 4,200 P52,000 P2,020 2,000 9,320 Maintenance per year 2,800 1,900 1,300 700 Taxes and insurance 3% 3% 3% 3% Estimated life 5 years 5 years 5 years 5 years Money is worth 17% before taxes to the company. Which machine should be chosen?
Transcribed Image Text:1. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: D. First Cost P24,000 1,300 11,600 P30,000 P1,360 P49,600 Power per year Labor per year P2,400 4,200 P52,000 P2,020 2,000 9,320 Maintenance per year 2,800 1,900 1,300 700 Taxes and insurance 3% 3% 3% 3% Estimated life 5 years 5 years 5 years 5 years Money is worth 17% before taxes to the company. Which machine should be chosen?
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