A company is going to buy a new machine for manufacturing its product. Four different machines...

 

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A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: A B с First cost Power per year Labor per year Maintenance per year Taxes and insurance Life, years P24,000 1,300 11,600 2,800 3% 5 P30,000 1,360 9,320 1,900 3% 5 P49,600 2,400 4,200 1,300 3% 5 D P52,000 2,020 2,000 700 3% 5 Money is worth 17% before taxes to the company. Which machine to be chosen? 29 A company is going to buy a new machine for manufacturing its product. Four different machines are available. Cost, operating and other expenses are as follows: A B с First cost Power per year Labor per year Maintenance per year Taxes and insurance Life, years P24,000 1,300 11,600 2,800 3% 5 P30,000 1,360 9,320 1,900 3% 5 P49,600 2,400 4,200 1,300 3% 5 D P52,000 2,020 2,000 700 3% 5 Money is worth 17% before taxes to the company. Which machine to be chosen? 29

Answer rating: 100% (QA)

Now given minimum acceptable Rate of Return MARR before taxes 17 We need to use the after tax MARR i... View the full answer