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A company wants to upgrade its boiler to increase its work production. It thinks of two options. The 1st option is to install one type
A company wants to upgrade its boiler to increase its work production. It thinks of two options. The 1st option is to install one type of a boiler 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 2nd option is another type of a boiler costing P1.677,079 with a life of 14 years, annual operating cost of P81.964 and a salvage value of 10% of the first cost. If money is worth 21% cpd. a, what is the Annual Equivalent Cost of 2nd option
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