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5. Nippon industrial firm of Japan received an offer for the supply of two electric motors which are being considered to power an industrial hoist. Motor A Motor B Investment cost Annual P 4500 maintenance P 900 P 10,200 P 450 cost Life of motor Salvage value 4 years 8 years If the minimum attractive rate of return is 8% per annum, compute the difference in the capitalized cost of motor A and B.

5. Nippon industrial firm of Japan received an offer for the supply of two electric motors which are being considered to power an industrial hoist. Motor A Motor B Investment cost Annual P 4500 maintenance P 900 P 10,200 P 450 cost Life of motor Salvage value 4 years 8 years If the minimum attractive rate of return is 8% per annum, compute the difference in the capitalized cost of motor A and B.

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
Section: Chapter Questions
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please also draw a cash flow 

5. Nippon industrial firm of Japan received an offer for the supply of two electric motors which are being considered to power an industrial hoist. Motor A Motor B P 10,200 P 450 Investment cost Annual cost Life of motor Salvage value P 4500 maintenance P 900 4 years 8 years If the minimum attractive rate of return is 8% per annum, compute the difference in the capitalized cost of motor A and B.
Transcribed Image Text:5. Nippon industrial firm of Japan received an offer for the supply of two electric motors which are being considered to power an industrial hoist. Motor A Motor B P 10,200 P 450 Investment cost Annual cost Life of motor Salvage value P 4500 maintenance P 900 4 years 8 years If the minimum attractive rate of return is 8% per annum, compute the difference in the capitalized cost of motor A and B.
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