1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received and basis of selection have been tabulated as follows: Offer A Php 60,00 Php 96,000 Php 120,000 3 5,000 10,000 Offer B Offer C Price of Pump Economic life (yrs) Salvage Value@ end of econ life Yearly Maintenance cost 10 8,000 5,000 10,000 6,000 TER If cost of money is 14%, what offer would you recommend to be purchased?

1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received and basis of selection have been tabulated as follows: Offer A Php 60,00 Php 96,000 Php 120,000 3 5,000 10,000 Offer B Offer C Price of Pump Economic life (yrs) Salvage Value@ end of econ life Yearly Maintenance cost 10 8,000 5,000 10,000 6,000 TER If cost of money is 14%, what offer would you recommend to be purchased?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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