Transcribed image text: 1. An industrial plant is considering the purchase of a centrifugal pump. Three offers
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Transcribed image text: 1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received and basis of selection have been tabulated as follows: Offer Offer B Offer C 11 Price of pump P60,000 P96.000 P120,000 Economic life, years 3 5 10 Salvage value at end of economic life 5.000 10,000 8,000 Yearly maintenance cost 10,000 6.000 5.000 cost of money is 14%, what offer would you recommend to be purchased? Use the rate of retum method, the annual cost method, present worth method and equivalent uniform annual cost method for the evaluation
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