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8. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time,
8. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time, should be purchased. The minimum attractive return is 8%. Machine B P20,000 Machine A P10,000 6 years 0 P250 First Cost Estimated Life Salvage Value Annual Maintenance 14 years P6,000 P300 Basing on the annual cost, using straight line method of computing depreciation, determine which machine you would choose and how much is the difference in its annual cost? A. Machine B, P1,205.06 B. Machine B, P 1,566.67 C. Machine A, P1,205.06 D. Machine A, P1,566.67 8. Make an economic analysis to determine which of the following two machines capable of performing the same task in a given amount of time, should be purchased. The minimum attractive return is 8%. Machine B P20,000 Machine A P10,000 6 years 0 P250 First Cost Estimated Life Salvage Value Annual Maintenance 14 years P6,000 P300 Basing on the annual cost, using straight line method of computing depreciation, determine which machine you would choose and how much is the difference in its annual cost? A. Machine B, P1,205.06 B. Machine B, P 1,566.67 C. Machine A, P1,205.06 D. Machine A, P1,566.67
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