Using annual cost method, what is the total annual cost of machine A, B, C, D. A company is going to buy a new machine for manufacturing its product.Four different machines are available.First costPower peryearLabor peryearABсDPhpPhp PhpPhp24,000 30,000 49,600 52,000Php Php Php Php1,300 1,360 2,400 2,020Php Php Php Php11,600 9,320 4,200 2,000Maintenance Php Php Php Phpper year2,800 1,9001,300700Taxes andinsuranceLife, yearsMoney is worth 17% before taxes to the company.3% 3% 3% 3%5555

Given, A company has decided to buy a new machineFour different machines are available.Money is…

Answered: A company is going to buy a new machine…

Business

Economics

A company is going to buy a new machine for manufacturing its product. Four different machines are available.

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

Using annual cost method, what is the total annual cost of machine A, B, C, D.

A company is going to buy a new machine for manufacturing its product.
Four different machines are available.
First cost
Power per
year
Labor per
year
A
B
с
D
Php
Php Php
Php
24,000 30,000 49,600 52,000
Php Php Php Php
1,300 1,360 2,400 2,020
Php Php Php Php
11,600 9,320 4,200 2,000
Maintenance Php Php Php Php
per year
2,800 1,900
1,300
700
Taxes and
insurance
Life, years
Money is worth 17% before taxes to the company.
3% 3% 3% 3%
5
5
5
5

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