Case Study

Case Study $1.$ Machine A costs Rs$.10000$ and has useful life of $8$ years. Machine B costs Rs $\mathrm{.}8000$ and has useful life of $6$ years. Suppose machine A generates an annual labour saving of Rs$.2000$ while machine B generates an annual labour savings of Rs$.1800.$ Assuming the time value of money is $10\%$ per annum, answer the questions associated with this information.

Case Study $2.$ Consider the information given as Principle as Rs$.50,000,$ time as $4$ years and rate of interest as $6\%.$ Answer the questions associated with this information.

Question $1$: Based on Case Study $1-$ As per the calculations $,$ machine $\_\_\_\_\_\_$ will be preferred

Question $2$: Based on Case Study $1-$ Equivalent annual cost for machine A is $\_\_\_\_\_\_$

Question $3$: Based on Case Study $1-$ Equivalent annual cost for machine B is $\_\_\_\_\_\_$

Question $4$: Based on Case Study $1-$ PV annual factor for machine A is $\_\_\_\_\_\_$

Question $5$: Based on Case Study $1-$ PV annual factor for machine B is $\_\_\_\_\_\_$

Question $6$: Based on Case Study $2-$ In case of monthly compounding, the formula for finding amount will be $\_\_\_\_\_\_$

Question $7$: Based on Case Study $2-$ What will be the amount compounded annually?

Question $8$: Based on Case Study $2-$ What will be the amount compounded monthly?

Question $9$: Based on Case Study $2-$ What will be the amount compounded quarterly?

Question $10$: Based on Case Study $2-$ What will be the amount compounded Semiannually?