Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years Money is worth at least 16% Using equivalent uniform annual cost methodi determine the value of alternative A and alternative B: 10 15

Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years Money is worth at least 16% Using equivalent uniform annual cost methodi determine the value of alternative A and alternative B: 10 15

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
Machine A
Machine B
First Cost
P8,000.00
P14,000.00
Salvage value
Annual operation
2,000.00
3,000.00
2,400.00
Annual maintenance
1,200.00
1,000.00
Taxes and insurance
3%
3%
Life, years
10
15
Money is worth at least 16%
Using equivalent uniform annual cost method,determine the valuejof alternative A and alternative B:

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