A certain power plant is considering two alternatives with regards to a hydraulic equipment which it needs. The following alternatives were considered. Equipment A Equipment B First Cost: P 120,000 P 136,000 Salvage Value: P 15,000 0 Life: 6 years 8 years Annual Maintenance: P 9,000 P 7,000 Compute the difference between the equivalent present worth of the two alternatives if interest rate is 7% compounded annually. Select one: a. P 26,410 b. P 30,108 c. P 28,312
A certain power plant is considering two alternatives with regards to a hydraulic equipment which it needs. The following alternatives were considered. Equipment A Equipment B First Cost: P 120,000 P 136,000 Salvage Value: P 15,000 0 Life: 6 years 8 years Annual Maintenance: P 9,000 P 7,000 Compute the difference between the equivalent present worth of the two alternatives if interest rate is 7% compounded annually. Select one: a. P 26,410 b. P 30,108 c. P 28,312
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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A certain power plant is considering two alternatives with regards to a hydraulic equipment which it needs. The following alternatives were considered.
Equipment A Equipment B
First Cost: P 120,000 P 136,000
Salvage Value: P 15,000 0
Life: 6 years 8 years
Annual Maintenance: P 9,000 P 7,000
Compute the difference between the equivalent present worth of the two alternatives if interest rate is 7% compounded annually.
Select one:
a. P 26,410
b. P 30,108
c. P 28,312
d. P 24,895
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