Given the two machines' data First Cost Salvage value Annual operation Annual maintenance Machine A P8,000.00 0 3,000.00 1,200.00 Machine B P14,000.00 2,000.00 2,400.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16%. What is the exact rate of return?

Given the two machines' data First Cost Salvage value Annual operation Annual maintenance Machine A P8,000.00 0 3,000.00 1,200.00 Machine B P14,000.00 2,000.00 2,400.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16%. What is the exact rate of return?

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

Given the two machines' data
First Cost
Salvage value
Annual operation
Annual maintenance
Machine A
P8,000.00
0
3,000.00
1,200.00
Machine B
P14,000.00
2,000.00
2,400.00
1,000.00
Taxes and insurance
3%
3%
Life, years
10
15
Money is worth at least 16%. What is the exact rate of return?

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