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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text: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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