A manufacturer of off-road vehicles is considering the purchase of dual axis inclinometers for installation in a new line of tractors. The distributor of the inclinometers is temporary overstocked and is offering them at a 40% discount from the regular cost of Php 3 400. If the purchase gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if the purchased in 2 years. Assume the interest rate is 10% per year. a. Php 940 b. Php 770 c. Php 880 d. Php 820

A manufacturer of off-road vehicles is considering the purchase of dual axis inclinometers for installation in a new line of tractors. The distributor of the inclinometers is temporary overstocked and is offering them at a 40% discount from the regular cost of Php 3 400. If the purchase gets them now instead of 2 years from now, which is when they will be needed, what is the present worth of the savings per unit? The company would pay the regular price, if the purchased in 2 years. Assume the interest rate is 10% per year. a. Php 940 b. Php 770 c. Php 880 d. Php 820

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EB: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment...

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