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ABC company offers a XYZ corporation two options for a certain machine. In using the more economical, the Present Value (PV) Method will be used.

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ABC company offers a XYZ corporation two options for a certain machine. In using the more economical, the Present Value (PV) Method will be used. What is the Present Value of Option B? Assume interest is 23% cpd. a. Option A: First Cost P100,000: Annual operating cost P20,000: Salvage Value - P5,000 and Useful life - 3 years Option B: First Cost - P106.162: Annual operating cost - P28,513; Salvage Value - P16,494 and Useful life - 5 years

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