Question
An accountant has to pick between the following two machines Machine 1............ Machine 2 Initial cost -75000 -130000 Annual oper cost -8000 -11000 Annual savings
An accountant has to pick between the following two machines
Machine 1............ Machine 2
Initial cost -75000 -130000
Annual oper cost -8000 -11000
Annual savings 15000 40000
Salvage 15000 22000 life 4 years 4 years
Using 8% interest calculate the following Find Present Worth increment between machines 1 & 2
Find Annual Worth increment between machine 1 & 2
What does the accountant choose to purchase?
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Cost Accounting Principles And Applications
Authors: Horace R. Brock, Linda Herrington
6th Edition
0028034287, 978-0028034287
