Cost for two machines are given below: Machine A First cost Salvage value Annual operation Annual maintenance Taxes and insurance Life, years Money is worth at least 10 %. Determine: a) b) c) P20,000 2,000 3,000 1,200 3% 8 Machine B Rate of return on additional investment Uniform annual Cost of Machine A and Machine B Which is more economical P30,000 3,000 2,500 1,000 3% 12
Cost for two machines are given below: Machine A First cost Salvage value Annual operation Annual maintenance Taxes and insurance Life, years Money is worth at least 10 %. Determine: a) b) c) P20,000 2,000 3,000 1,200 3% 8 Machine B Rate of return on additional investment Uniform annual Cost of Machine A and Machine B Which is more economical P30,000 3,000 2,500 1,000 3% 12
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:4. Cost for two machines are given below:
Machine A
First cost
Salvage value
Annual operation
Annual maintenance
Taxes and insurance
Life, years
Money is worth at least 10 %.
Determine:
a)
b)
c)
P20,000
2,000
3,000
1,200
3%
Machine B
P30,000
3,000
2,500
1,000
3%
8
12
Rate of return on additional investment
Uniform annual Cost of Machine A and Machine B
Which is more economical
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