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An industrial organization studying the relative desirability of two diesel engines proposed for installation has estimated that the annual operating costs for engine A is
An industrial organization studying the relative desirability of two diesel engines proposed for installation has estimated that the annual operating costs for engine A is Tk. 40,000 and for engine B is Tk. 35000. What is the added justifiable investment for engine B if the cost of money use is 8 percent of the investment, taxes are 4 percent of 80 percent of the first cost, insurance is 0.3 percent of investment, and annual depreciation charge has been set at 5 percent of the total investment? An industrial organization studying the relative desirability of two diesel engines proposed for installation has estimated that the annual operating costs for engine A is Tk. 40,000 and for engine B is Tk. 35000. What is the added justifiable investment for engine B if the cost of money use is 8 percent of the investment, taxes are 4 percent of 80 percent of the first cost, insurance is 0.3 percent of investment, and annual depreciation charge has been set at 5 percent of the total investment
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