solve manually. (do not use excel) 2. Choose from the two machines which is more economical?Machine AMachine BP 8,000P 14,000151502,000P 3,000P 1,2003%First CostLifeSalvage ValueAnnual OperationP 2,400Annual MaintenanceP 1,000Taxes and Insurance3%Which will you choose if minimum required profit is 16%. Use Rate of Return on AdditionalInvestment, Annual Cost Method and Present Worth Method

Given that; Machine A Machine B First Cost P8000 P14000 Annual operation P3000 P2400…

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%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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