38. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: Determine the best printing machine using ROR analysis for the data given. A B C Acquisition Cost P700 000.00 P850 000.00 P1 000 000.00 Shipping Cost 5% 5% 8% Net Annual Benefit P155 000.00 P145 000.00 P170 000.00 Useful Life 8 years 16 years 16 years Salvage Value P35 000.00 P70 000.00 P80 000.00
38. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: Determine the best printing machine using ROR analysis for the data given. A B C Acquisition Cost P700 000.00 P850 000.00 P1 000 000.00 Shipping Cost 5% 5% 8% Net Annual Benefit P155 000.00 P145 000.00 P170 000.00 Useful Life 8 years 16 years 16 years Salvage Value P35 000.00 P70 000.00 P80 000.00
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
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38. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates:
Determine the best printing machine using ROR analysis for the data given.
|
A |
B |
C |
Acquisition Cost |
P700 000.00 |
P850 000.00 |
P1 000 000.00 |
Shipping Cost |
5% |
5% |
8% |
Net Annual Benefit |
P155 000.00 |
P145 000.00 |
P170 000.00 |
Useful Life |
8 years |
16 years |
16 years |
Salvage Value |
P35 000.00 |
P70 000.00 |
P80 000.00 |
(Ans. Select machine B; iB-A= 15.34%; iC-B=10.9%)
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