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Data for two alternatives are as follows:                                                A                    B Investment                        ₱ 35,000       ₱ 50,000 Annual benefits                 ₱ 20,000       ₱ 25,000 Annual O and M                ₱ 6,450         ₱ 13,830  Estimated life, years               4                   8 Net Salvage value             ₱ 3,500               0   Using an interest rate of 20%, which alternative should be chosen?

Data for two alternatives are as follows:                                                A                    B Investment                        ₱ 35,000       ₱ 50,000 Annual benefits                 ₱ 20,000       ₱ 25,000 Annual O and M                ₱ 6,450         ₱ 13,830  Estimated life, years               4                   8 Net Salvage value             ₱ 3,500               0   Using an interest rate of 20%, which alternative should be chosen?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Data for two alternatives are as follows:

                                               A                    B

Investment                        ₱ 35,000       ₱ 50,000

Annual benefits                 ₱ 20,000       ₱ 25,000

Annual O and M                ₱ 6,450         ₱ 13,830

 Estimated life, years               4                   8

Net Salvage value             ₱ 3,500               0

 

Using an interest rate of 20%, which alternative should be chosen?

Data for two alternatives are as follows: A P 35,000 ℗ 20,000 Investment Annual benefits Annual O and M Estimated life, years Net Salvage value P 6,450 4 P 3,500 B P 50,000 P 25,000 P 13,830 8 0 Using an interest rate of 20%, which alternative should be chosen?
Transcribed Image Text:Data for two alternatives are as follows: A P 35,000 ℗ 20,000 Investment Annual benefits Annual O and M Estimated life, years Net Salvage value P 6,450 4 P 3,500 B P 50,000 P 25,000 P 13,830 8 0 Using an interest rate of 20%, which alternative should be chosen?
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