A highway contractor needs some heavy-duty trucks for his construction jobs. Suppliers of two trucks, Isuzu...

 

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A highway contractor needs some heavy-duty trucks for his construction jobs. Suppliers of two trucks, Isuzu and Hino, have furnished the following data: First cost Life Salvage Value Annual operation and maintenance Isuzu P 6,000,000 4 years P 500,000 P 900,000 c. PWC method d. EUAC method Hino P 10,000,000 8 years P 900,000 P 600,000 If the contractor requires a minimum of 18% on his investment, which truck should he buy using: a. ROR method b. AC method A highway contractor needs some heavy-duty trucks for his construction jobs. Suppliers of two trucks, Isuzu and Hino, have furnished the following data: First cost Life Salvage Value Annual operation and maintenance Isuzu P 6,000,000 4 years P 500,000 P 900,000 c. PWC method d. EUAC method Hino P 10,000,000 8 years P 900,000 P 600,000 If the contractor requires a minimum of 18% on his investment, which truck should he buy using: a. ROR method b. AC method

Answer rating: 100% (QA)

AC Method Annuity Factor 1 11rt r Calculations Isuzu 1 1... View the full answer