A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%. What is the annual cost for machine Y
A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable rate of return is 8%. What is the annual cost for machine Y
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A sportswear factory has two alternative machines for producing jerseys. Costs are shown below. Minimum acceptable
What is the annual cost for machine Y?
![Initial Cost
Salvage Value
Operating Costs
Life
Machine X
P 243,000
P 36,450
P 9,500/yr
15 yrs
Machine Y
P 333,000
P 33,300
P 6,300/yr (1st 10 years)
P 8,100/yr (2nd 10 years)
20 yrs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87eb59d6-16a8-45f1-bb6f-765565ce510d%2Ff18b846b-785f-424a-995b-b221ae22215e%2F7nt38e_processed.png&w=3840&q=75)
Transcribed Image Text:Initial Cost
Salvage Value
Operating Costs
Life
Machine X
P 243,000
P 36,450
P 9,500/yr
15 yrs
Machine Y
P 333,000
P 33,300
P 6,300/yr (1st 10 years)
P 8,100/yr (2nd 10 years)
20 yrs
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