Choose from the two machines which is more economical: Machine A Machine B First Cost P12,000 Р17,000 Salvage Value Annual Operation P2,000 3,000 2,400 Annual Maintenance 1,200 1,000 Taxes and Insurance 3% 3% Life, years 10 15 Money is worth at least 16%
Choose from the two machines which is more economical: Machine A Machine B First Cost P12,000 Р17,000 Salvage Value Annual Operation P2,000 3,000 2,400 Annual Maintenance 1,200 1,000 Taxes and Insurance 3% 3% Life, years 10 15 Money is worth at least 16%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A. Rate of
B. Annual Cost Method

Transcribed Image Text:Choose from the two machines which is more economical:
Machine A
Machine B
First Cost
P12,000
Р17,000
Salvage Value
Annual Operation
P2,000
3,000
2,400
Annual Maintenance
1,200
1,000
Taxes and Insurance
3%
3%
Life, years
10
15
Money is worth at least 16%
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