Question
A company must decide wheter to buy Machine A or Machine B. Machine A>> Initial cost :4,00,000 , Useful life: 5 , Salvage Value: 2,00,000
A company must decide wheter to buy Machine A or Machine B.
Machine A>> Initial cost :4,00,000 , Useful life: 5 , Salvage Value: 2,00,000 , Annual maintainance cost: 40,000.
Machine B>> Initial cost:8,00,000 , useful life: 5 , Salvage value: 550,000 , Annual maintainance: 0
At 15% intrest rate , which machine must be selected using future worth comparison ?
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Cost Accounting
Authors: Srivastava Lal, Jawahar Lal
5th Edition
1259026523, 978-1259026522
