Choose from the two machines which is more economical. Machine A Machine B First Cost Salvage value Annual operation Annual maintenance P8,000 PO P3,000 P1,200 3% P14,000 P2,000 P2,400 P1,000 Taxes and insurance 3%

Choose from the two machines which is more economical. Machine A Machine B First Cost Salvage value Annual operation Annual maintenance P8,000 PO P3,000 P1,200 3% P14,000 P2,000 P2,400 P1,000 Taxes and insurance 3%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please don't use Excel or any processors because I'll use this as a reviewer for our test that requires manual computation. Thank you!

Choose from the two machines which is more economical.
Machine A
Machine B
First Cost
Salvage value
Annual operation
Annual maintenance
P8,000
PO
P3,000
P1,200
P14,000
P2,000
P2,400
P1,000
3%
3%
10
Taxes and insurance
Life, years
10
Money is worth at least 16%.

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