3. Choose from the two equipment which is more economical. Machine A Machine B First cost Php 8000 Php 14,000 Salvage value Php 2000 Annual operation Php 3000 Php 2400 Annual maintenance Php 1200 Php 1000 Taxes & insurance 3% 3%

3. Choose from the two equipment which is more economical. Machine A Machine B First cost Php 8000 Php 14,000 Salvage value Php 2000 Annual operation Php 3000 Php 2400 Annual maintenance Php 1200 Php 1000 Taxes & insurance 3% 3%

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

Section: Chapter Questions

Problem 1PS

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Question

3.
Choose from the two equipment which is more economical.
Machine A
Machine B
First cost
Php 8000
Php 14,000
Salvage value
Php 2000
Annual operation
Php 3000
Php 2400
Annual maintenance
Php 1200
Php 1000
Taxes & insurance
3%
3%
BASIC ENGINEERING ECONOMY
62
Life in years
10
15
Money is worth at least 16%.

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