Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:
Given the two machines’ data
Machine A Machine B
First Cost P8,000.00 P14,000.00
Salvage value 0 2,000.00
Annual operation 3,000.00 2,400.00
Annual maintenance 1,200.00 1,000.00
Taxes and insurance 3% 3%
Life, years 10 15
Money is worth at least 16%
Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:
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