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A company is thinking about trading-in its old boiler with either of the two competing boilers. The relevant data for consideration are given: Old Boiler

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A company is thinking about trading-in its old boiler with either of the two competing boilers. The relevant data for consideration are given: Old Boiler P15M Co CL L (years) A. CLi (or trade-in value) Boiler A P10M P60,000 10 P1.5M P4,804,421 Boiler B P12M P90.000 15 P2.5 P3M 6 (remaining life) P2.789.499 Find the Annual Equivalent Cost of the Old Boiler when compared against Boiler A, with the interest being 24% cpd. annually. A company is thinking about trading-in its old boiler with either of the two competing boilers. The relevant data for consideration are given: Old Boiler P15M Co CL L (years) A. CLi (or trade-in value) Boiler A P10M P60,000 10 P1.5M P4,804,421 Boiler B P12M P90.000 15 P2.5 P3M 6 (remaining life) P2.789.499 Find the Annual Equivalent Cost of the Old Boiler when compared against Boiler A, with the interest being 24% cpd. annually

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