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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text: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
Р10,000
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?
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