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Choice A: Buy the machine Machine Cost: P700,000 Economic Life: 10 years Trade-in Value: P100,000 Operating Cost per day: P500 Choice B: Rent the machine

Choice A: Buy the machine
Machine Cost: P700,000
Economic Life: 10 years
Trade-in Value: P100,000
Operating Cost per day: P500
Choice B: Rent the machine
Rent Payment: P1,500 per day
Assuming that the rate of return is 18% and Choice A is to be chosen, how long in days should the machine be in use?
image text in transcribed
TIP Manila is considering two choices with regard to an electronic scanning machine which it needs for ID verification of students. Listed below are the details of the given choices for consideration (10 pts): Choice A: Buy the machine Machine Cost: P700,000 Economic Life: 10 years Trade-in Value: P100,000 Operating Cost per day: P500 Choice B: Rent the machine Rent Payment: P1,500 per day Assuming that the rate of return is 18% and Choice A is to be chosen, how long in days should the machine be in use

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