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A company is considering 2 machines for its plant. Pertinent data follow. If money is worth at least 16%, which should be selected? Apply ROR

A company is considering 2 machines for its plant. Pertinent data follow. If money is worth at least 16%, which should be selected? Apply ROR (Rate of return)

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2. Choose from the two machines which is more economical? Machine A Machine B First cost P8,000 P14,000 Salvage Value 0 P2,000 Annual Operation P3,000 P2.400 Annual Maintenance P1,200 P1,000 Taxes & Insurance 3% 3% Life, years 10 15

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