luct. Four different machines are available. Cost, operating and other enses are as follows. Money is worth 17% before taxes to the company. ich machine should be chosen? Machine A Machine B Machine C Machine D (FC) P 24,000 P 30,000 P 49,600 P 52,000 DC)/year 1,300 P 1,360 2,400 P 2,020 P 11,600 P 4,200 LC)'year AC)'year P 9,320 2,000 P 2,800 1,900 1,300 700
luct. Four different machines are available. Cost, operating and other enses are as follows. Money is worth 17% before taxes to the company. ich machine should be chosen? Machine A Machine B Machine C Machine D (FC) P 24,000 P 30,000 P 49,600 P 52,000 DC)/year 1,300 P 1,360 2,400 P 2,020 P 11,600 P 4,200 LC)'year AC)'year P 9,320 2,000 P 2,800 1,900 1,300 700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:A company is going to buy a new machine for manufacturing its
product. Four different machines are available. Cost, operating and other
expenses are as follows. Money is worth 17% before taxes to the company.
Which machine should be chosen?
Machine A
Machine B
Machine C
Machine D
P 24,000
P 30,000
P 49,600
P 52,000
P 2,020
(FC)
(ОСУ уear
P 1,300
P
1,360
P 2,400
(LC)/year
P 11,600
P
9,320
P 4,200
P
2,000
(МС) year
P 2,800
1,900
1,300
700
(IT)/year
P
720
P
900
P 1,488
P 1,560
Life
5 years
5 years
5 years
5 years
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