3. Make an economic analysis to determine which of the following two machinescapable of performing the same task in a given amount of time, should be purchased.The minimum return is 8%.Machine AMachine BFirst CostP10,0006 yearsP20,00014 yearsEstimated LifeSalvage ValueAnnual maintenanceP6,000P300P250Basing on annual cost, using straight line method of computing depreciation, determinewhich machine you would choose and how much is the difference in its annual cost?Hint: Compute the Annual Cost of Machine A and Machine B then compare the costs, get thedifference and recommend.

here we calculate the annual worth of the both machine and choose the best machine so , here we…

3. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time, should be purchased. The minimum return is 8%. Machine A Machine B First Cost P10,000 6 years P20,000 14 years P6,000 P300 Estimated Life Salvage Value Annual maintenance P250 Basing on annual cost, using straight line method of computing depreciation, determine which machine you would choose and how much is the difference in its annual cost? Hint: Compute the Annual Cost of Machine A and Machine B then compare the costs, get the difference and recommend.

3. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time, should be purchased. The minimum return is 8%. Machine A Machine B First Cost P10,000 6 years P20,000 14 years P6,000 P300 Estimated Life Salvage Value Annual maintenance P250 Basing on annual cost, using straight line method of computing depreciation, determine which machine you would choose and how much is the difference in its annual cost? Hint: Compute the Annual Cost of Machine A and Machine B then compare the costs, get the difference and recommend.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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