A computer engineer is considering the purchase of a laptop whose operating characteristics are almost the same. Three offers were received and the basis of selection have been tabulated as follows; OFFER A OFFER B OFFER C Price of laptop P60,000 P96,000 P120,000 Economic Life 3 years 5 years 10 years Salvage value at the P5,000 P10,000 P8,000 end of economic life Yearly maintenance Р10,000 P6,000 P5,000 cost If the cost of money is 14%, how much is the annual cost of the lowest offer?

A computer engineer is considering the purchase of a laptop whose operating characteristics are almost the same. Three offers were received and the basis of selection have been tabulated as follows; OFFER A OFFER B OFFER C Price of laptop P60,000 P96,000 P120,000 Economic Life 3 years 5 years 10 years Salvage value at the P5,000 P10,000 P8,000 end of economic life Yearly maintenance Р10,000 P6,000 P5,000 cost If the cost of money is 14%, how much is the annual cost of the lowest offer?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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