Use Rate of Return Method. Answer the given problem below. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows. Money is worth 17% before taxes to the company. Which machine should be chosen? Machine A Machine B Machine C Machine D P 52,000 P 24,000 P 1,300 P 11,600 P 2,800 (FC) P 30,000 P 49,600 (ОС) уear P 1,360 2,400 P 2,020 (LC)/year (МС) year 9,320 4,200 2,000 1,900 1,300 P 700 (IT)/year P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
Use Rate of Return Method. Answer the given problem below. A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows. Money is worth 17% before taxes to the company. Which machine should be chosen? Machine A Machine B Machine C Machine D P 52,000 P 24,000 P 1,300 P 11,600 P 2,800 (FC) P 30,000 P 49,600 (ОС) уear P 1,360 2,400 P 2,020 (LC)/year (МС) year 9,320 4,200 2,000 1,900 1,300 P 700 (IT)/year P 720 900 1,488 1,560 Life 5 years 5 years 5 years 5 years
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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