4. A manufacturer of off-road vehicles is considering the purchase of dual-axis inclinometers for installation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the regular cost of Php8000. If the purchaser gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if purchased in 2 years. Assume the interest rate is 10% per year. A Php32.16 B Php86.62 C Php1811.57 D Php4880

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 13RQ
Question
4. A manufacturer of off-road vehicles is considering the purchase of dual-axis inclinometers
for installation in a new line of tractors. The distributor of the inclinometers is temporarily
overstocked and is offering them at a 40% discount from the regular cost of Php8000. If the
purchaser gets them now instead of 2 years from now, which is when they will be needed,
what is the present worth of the savings per unit? The company would pay the regular price,
if purchased in 2 years. Assume the interest rate is 10% per year.
A Php32.16
B Php86.62
C Php1811.57
Php4880
D
Transcribed Image Text:4. A manufacturer of off-road vehicles is considering the purchase of dual-axis inclinometers for installation in a new line of tractors. The distributor of the inclinometers is temporarily overstocked and is offering them at a 40% discount from the regular cost of Php8000. If the purchaser gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if purchased in 2 years. Assume the interest rate is 10% per year. A Php32.16 B Php86.62 C Php1811.57 Php4880 D
Expert Solution
steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Types of Tax Rate Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Fundamentals Of Construction Estimating
Fundamentals Of Construction Estimating
Civil Engineering
ISBN:
9781337399395
Author:
Pratt, David J.
Publisher:
Cengage,