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A businessman wants to upgrade his factory to increase its work production. He thinks of two options. The first option is to install one type
A businessman wants to upgrade his factory to increase its work production. He thinks of two options. The first option is to install one type of a generating set costing P 2M with a life of 10 years and an annual operating cost of P 30,000 and a salvage value of P 400,000. The second option is another type of a generating set P3,321,595 with a life of 11 years, annual operating cost of P206,525 and a salvage value of 10% of the first cost. If money is worth 22% cpd. a. what is the Annual Cost of the 2nd option
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