YOU WERE EMPLOYED IN A BPO COMPANY AND YOUR COMPANY TASKED YOU TO BUY A NEW ROUTER TO BOOST YOUR CONNECTIVITY WITH MANY NETWORKS SWITCH. THERE ARE FOUR AVAILABLE PRODUCTS TO CHOOSE FROM WITH THE FF COST DATA. COST DATA Brand A B C D FIRST COST 24K 30K 49.6K 52K LABOR/YR 11.6K 9.32K 4.2K 2K MAINTENANCE/YR 2.8K 1.9K 1.3K 0.7K TAXES/INSURANCE 3% of ist cost 3% of ist cost 3% of ist cost 3% of ist cost POWER/YR 1.3K 1.36K 2.4K 2.020K LIFE,YRS a. IF THE COST OF MONEY IS 17%, CHOOSE THE BEST ALTERNATIVE THAT YOU WILL RECOMMEND USING ANNUAL WORTH METHOD. b. PRESENT YOUR ANSWER IN MATRIX FORM. c. SHOW YOUR COMPUTATION ON DEPRECIATION USING SINKING FUND FORMULA.
YOU WERE EMPLOYED IN A BPO COMPANY AND YOUR COMPANY TASKED YOU TO BUY A NEW ROUTER TO BOOST YOUR CONNECTIVITY WITH MANY NETWORKS SWITCH. THERE ARE FOUR AVAILABLE PRODUCTS TO CHOOSE FROM WITH THE FF COST DATA. COST DATA Brand A B C D FIRST COST 24K 30K 49.6K 52K LABOR/YR 11.6K 9.32K 4.2K 2K MAINTENANCE/YR 2.8K 1.9K 1.3K 0.7K TAXES/INSURANCE 3% of ist cost 3% of ist cost 3% of ist cost 3% of ist cost POWER/YR 1.3K 1.36K 2.4K 2.020K LIFE,YRS a. IF THE COST OF MONEY IS 17%, CHOOSE THE BEST ALTERNATIVE THAT YOU WILL RECOMMEND USING ANNUAL WORTH METHOD. b. PRESENT YOUR ANSWER IN MATRIX FORM. c. SHOW YOUR COMPUTATION ON DEPRECIATION USING SINKING FUND FORMULA.
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
Related questions
Question
Transcribed Image Text:1. COMPARING ALTERNATIVES-
YOU WERE EMPLOYED IN A BPO COMPANY AND YOUR COMPANY TASKED YOU TO BUY A NEW ROUTER
TO BOOST YOUR CONNECTIVITY WITH MANY NETWORKS SWITCH. THERE ARE FOUR AVAILABLE
PRODUCTS TO CHOOSE FROM WITH THE FF COST DATA.
COST DATA
Brand A
C
D
FIRST COST
24K
30K
49.6K
52K
LABOR/YR
MAINTENANCE/YR
TAXES/INSURANCE
11.6K
9.32K
4.2K
2K
2.8K
1.9K
1.3K
0.7K
3% of ist cost
3% of ist cost
3% of ist cost
3% of ist cost
POWER/YR
1.3K
1.36K
2.4K
2.020K
LIFE,YRS
5
a. IF THE COST OF MONEY IS 17%, CHOOSE THE BEST ALTERNATIVE THAT YOU WILL RECOMMEND
USING ANNUAL WORTH METHOD.
b. PRESENT YOUR ANSWER IN MATRIX FORM.
c. SHOW YOUR COMPUTATION ON DEPRECIATION USING SINKING FUND FORMULA.
2. IN CASE YOU PREFER A CERTAIN BRAND BUT IT DID NOT MEET THE ANNUAL COST CRITERIA, WHAT
ARE THE OPTIONS YOU WILL DO IN ORDER THAT THE PREFERRED BRAND WILL BE ACCEPTED BY TOP
MANAGEMENT? THE QUALITY OF BRAND A, B, C, & D ARE AT THE SAME LEVEL.
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