Q: Two equipment are selected to be bought by the company. If the annual interest rate is 7%, which one should be purchased? Please consider the * .information below Cost item Buying Cost Salvage Value Useful Ufe in months 7000$ 1500$ 5000$ 1000$ 144 72 A O B O
Q: Two equipment are selected to be bought by the company. If the annual interest rate is 7%, which one should be purchased? Please consider the * .information below Cost item Buying Cost Salvage Value Useful Ufe in months 7000$ 1500$ 5000$ 1000$ 144 72 A O B O
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Please answer both question i will upvote
Transcribed Image Text::Ahmed is choosing between to types of generators, Model A and model
B. based on the information listed down, which alternative is the best
*.choice for Ahmed. Assume these equipment have long working life
Cost item
A.
B
Buying Cost
Fadng Cost
Annual Maintenance Cost
Annual Tax
Salvage Value
10000$
3500$
2500$
1200$
700$
17500$
5000$
700$
2000$
500$
A&B O
BO
A O
None O
Transcribed Image Text:Q: Two equipment are selected to be bought by the company. If the annual
interest rate is 7%, which one should be purchased? Please consider the
* .information below
Cost item
Buying Cost
Salvage Value
Useful Life in months
7000$
1500$
144
5000$
1000$
72
A O
в О
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