2. A construction firm plans to purchase new excavator. Two manufacturers offered to company with the respective estimates below. Seller A Seller B Descriptions First cost, PhP (in 1000 PhP) Annual M&O cost, PhP/ Year (in 1000 Php) Salvage value, PhP Economic life, Years 15,000 3,500 1,000 18,000 3,100 2,000 6
2. A construction firm plans to purchase new excavator. Two manufacturers offered to company with the respective estimates below. Seller A Seller B Descriptions First cost, PhP (in 1000 PhP) Annual M&O cost, PhP/ Year (in 1000 Php) Salvage value, PhP Economic life, Years 15,000 3,500 1,000 18,000 3,100 2,000 6
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![2. A construction firm plans to purchase new excavator. Two manufacturers offered to the
company with the respective estimates below.
Seller A
Seller B
Descriptions
First cost, PhP (in 1000 PhP)
Annual M&O cost, PhP/ Year (in 1000 Php)
Salvage value, PhP
Economic life, Years
15,000
18,000
3,500
3,100
1,000
2,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff06c0a37-8633-4a9b-bb13-98104e8d9389%2F2455e3fb-a273-4255-b9cb-6a8739c1085c%2Fpte33r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. A construction firm plans to purchase new excavator. Two manufacturers offered to the
company with the respective estimates below.
Seller A
Seller B
Descriptions
First cost, PhP (in 1000 PhP)
Annual M&O cost, PhP/ Year (in 1000 Php)
Salvage value, PhP
Economic life, Years
15,000
18,000
3,500
3,100
1,000
2,000
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