Use Rate of Return Method. Answer the given problem below. 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 52,000 P 24,000 P 1,300 P 11,600 P 2,800 (FC) P 30,000 P 49,600 (ОС) уear P 1,360 2,400 P 2,020 (LC)/year (МС) year 9,320 4,200 2,000 1,900 1,300 P 700 (IT)/year P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
Use Rate of Return Method. Answer the given problem below. 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 52,000 P 24,000 P 1,300 P 11,600 P 2,800 (FC) P 30,000 P 49,600 (ОС) уear P 1,360 2,400 P 2,020 (LC)/year (МС) year 9,320 4,200 2,000 1,900 1,300 P 700 (IT)/year P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Use Rate of Return Method. Answer the given
problem below.
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
(FC)
P 24,000
P 30,000
P 49,600
P 52,000
(OC)'year
P 1,300
1,360
P 2,020
P
P
2,400
P 11,600
P 2,800
(LC)/year
P
9,320
P
4,200
P 2,000
(МC) year
1,900
1,300
700
(IT) уear
P
720
900
1,488
1,560
Life
5 years
5 years
5 years
5 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14858e36-e03b-4913-9271-ccc560852141%2Fe5929f3b-4c36-4978-a56e-7eda77c2c7c8%2Fkzt2z98_processed.png&w=3840&q=75)
Transcribed Image Text:Use Rate of Return Method. Answer the given
problem below.
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
(FC)
P 24,000
P 30,000
P 49,600
P 52,000
(OC)'year
P 1,300
1,360
P 2,020
P
P
2,400
P 11,600
P 2,800
(LC)/year
P
9,320
P
4,200
P 2,000
(МC) year
1,900
1,300
700
(IT) уear
P
720
900
1,488
1,560
Life
5 years
5 years
5 years
5 years
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