Engr. Collado is using a 10% annual interest rate to decide if it should by cement mixer A with agasoline engine or Cement Mixer B with a diesel engine.Equipment AEquipment BINITIAL COSTPhp 57500Php 85800LIFESPAN10 years10 yearsANNUAL OPERATING COSTPhp 18000Php 18000ANNUAL REPAIR COSTPhp 20000Php 10000SALVAGE VALUEPhp 0Php 19000Which of the two is more economical in the long run?

A B Initial Cost 5,71,500 85,800 Operating Cost 18,000 18,000 Repair Cost 20,000 10,000…

Engr. Collado is using a 10% annual interest rate to decide if it should þy cement mixer A with a gasoline engine or Cement Mixer B with a diesel engine. Equipment A Equipment B Php 57500 10 years INITIAL COST Php 85800 LIFESPAN 10 years ANNUAL OPERATING COST Php 18000 Php 18000 ANNUAL REPAIR COST Php 20000 Php 10000 Php 0 SALVAGE VALUE Php 19000 Which of the two is more economical in the long run?

Engr. Collado is using a 10% annual interest rate to decide if it should þy cement mixer A with a gasoline engine or Cement Mixer B with a diesel engine. Equipment A Equipment B Php 57500 10 years INITIAL COST Php 85800 LIFESPAN 10 years ANNUAL OPERATING COST Php 18000 Php 18000 ANNUAL REPAIR COST Php 20000 Php 10000 Php 0 SALVAGE VALUE Php 19000 Which of the two is more economical in the long run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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