answer and discuss pls A company is consider two types of equipment for its plant.Турe AТуре вFirst CostAnnual Opperating CostAnnual Labor Cost30000020000032000240005000032000Insurance and Property TaxesPayroll TaxesEstimated LifeInterest on CashSalvage Value4%4%5%5%101015%15%0%0%What is the annual cost of the cheaper method?

Given: Type A Type B First cost 300000 200000 Annual Operating cost 32000 24000 Annual…

Турe А Туре в First Cost Annual Opperating Cost Annual Labor Cost Insurance and Property Taxes Payroll Taxes Estimated Life Interest on Cash Salvage Value 200000 24000 32000 300000 32000 50000 4% 4% 5% 5% 10 10 15% 15% 0% 0% What is the annual cost of the cheaper method?

Турe А Туре в First Cost Annual Opperating Cost Annual Labor Cost Insurance and Property Taxes Payroll Taxes Estimated Life Interest on Cash Salvage Value 200000 24000 32000 300000 32000 50000 4% 4% 5% 5% 10 10 15% 15% 0% 0% What is the annual cost of the cheaper method?

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

answer and discuss pls

A company is consider two types of equipment for its plant.
Турe A
Туре в
First Cost
Annual Opperating Cost
Annual Labor Cost
300000
200000
32000
24000
50000
32000
Insurance and Property Taxes
Payroll Taxes
Estimated Life
Interest on Cash
Salvage Value
4%
4%
5%
5%
10
10
15%
15%
0%
0%
What is the annual cost of the cheaper method?

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