2. Choose from the two machines which is more economical? Machine A Machine B P 8,000 P 14,000 15 15 2,000 First Cost Life Salvage Value Annual Operation Annual Maintenance Taxes and Insurance Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional Investment, Annual Cost Method and Present Worth Method 0 P 3,000 P 1,200 P 2,400 P 1,000 3%
2. Choose from the two machines which is more economical? Machine A Machine B P 8,000 P 14,000 15 15 2,000 First Cost Life Salvage Value Annual Operation Annual Maintenance Taxes and Insurance Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional Investment, Annual Cost Method and Present Worth Method 0 P 3,000 P 1,200 P 2,400 P 1,000 3%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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solve manually. (do not use excel)

Transcribed Image Text:2. Choose from the two machines which is more economical?
Machine A
Machine B
P 8,000
P 14,000
15
15
0
2,000
P 3,000
P 1,200
3%
First Cost
Life
Salvage Value
Annual Operation
P 2,400
Annual Maintenance
P 1,000
Taxes and Insurance
3%
Which will you choose if minimum required profit is 16%. Use Rate of Return on Additional
Investment, Annual Cost Method and Present Worth Method
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