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2. Palm Springs Water Company is considering purchasing new filters for its water treatmer plant. Three options are available to choose from. The information is given in the table below: Filter Filter Filter Model A Model B Model C Initial Cost, P 32,000 25,000 36,000 Net Cash flow per year, P/year 6,800 5,500 7,200 Salvage Value 2,000 1000 3000 Life, year 6 Which filter model should you recommend and why? Explain your answer.

2. Palm Springs Water Company is considering purchasing new filters for its water treatmer plant. Three options are available to choose from. The information is given in the table below: Filter Filter Filter Model A Model B Model C Initial Cost, P 32,000 25,000 36,000 Net Cash flow per year, P/year 6,800 5,500 7,200 Salvage Value 2,000 1000 3000 Life, year 6 Which filter model should you recommend and why? Explain your answer.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2. Palm Springs Water Company is considering purchasing new filters for its water treatment plant. Three options are available to choose from. The information is given in the table below: Filter Filter Filter Model A Model B Model C Initial Cost, P 32,000 25,000 36,000 Net Cash flow per year, P/year 6,800 5,500 7,200 Salvage Value 2,000 1000 3000 Life, year 6 Which filter model should you recommend and why? Explain your answer.
Transcribed Image Text:2. Palm Springs Water Company is considering purchasing new filters for its water treatment plant. Three options are available to choose from. The information is given in the table below: Filter Filter Filter Model A Model B Model C Initial Cost, P 32,000 25,000 36,000 Net Cash flow per year, P/year 6,800 5,500 7,200 Salvage Value 2,000 1000 3000 Life, year 6 Which filter model should you recommend and why? Explain your answer.
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