A machine has an initial cost of P 50,000 with a useful life of 20 years with a salvage value of 20% of the initial cost of the machine. What is the annual cost of the machine if it has an annual maintenance of P 8,000 and an interest rate of 10%? P 14,287.22 P 13,698.38 P 15,117.42 P 11,782.34

A machine has an initial cost of P 50,000 with a useful life of 20 years with a salvage value of 20% of the initial cost of the machine. What is the annual cost of the machine if it has an annual maintenance of P 8,000 and an interest rate of 10%? P 14,287.22 P 13,698.38 P 15,117.42 P 11,782.34

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 11P

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Question

A machine has an initial cost of P 50,000 with a useful life of 20 years with a
salvage value of 20% of the initial cost of the machine. What is the annual cost of
the machine if it has an annual maintenance of P 8,000 and an interest rate of
10%?
P 14,287.22
P 13,698.38
P 15,117.42
P 11,782.34

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