It appears that Machine B will come out cheaper than Machine A since its EAA is P208.696.26 compared to Machine A EAA of P 233,734.54. So, Machine B has to be chosen Now, supposing the cost of money has gone up to 35%, is it reasonable to acquire Machine B over Machine A? Let us evaluate humanitionsonanesh ammanninamani Machine A: 5 years, 35% Factor=2.220 2.220 x P 100,000 = P 222,000 +P 400,000 = P 622,000/2.220-P 280,180.18 Machine B: 7 years, 35% Factor=2.508 2,508 x P 70,000P 175,560 + P 500,000 = P 675,560/2.508 =P 269,362.04 Since it appeared that Machine B has a lower cost of P 269,362.04 compared to Machine A of P 280,180.18, the choice should be Machine Bover Machine A inspite of the high cost of money. 0000 00002 It appears that Machine B will come out cheaper than Machine A since its EAA is P208.696.26 compared to Machine A EAA of P 233,734.54. So, Machine B has to be chosen Now, supposing the cost of money has gone up to 35%, is it reasonable to acquire Machine B over Machine A? Let us evaluate humanitionsonanesh ammanninamani Machine A: 5 years, 35% Factor=2.220 2.220 x P 100,000 = P 222,000 +P 400,000 = P 622,000/2.220-P 280,180.18 Machine B: 7 years, 35% Factor=2.508 2,508 x P 70,000P 175,560 + P 500,000 = P 675,560/2.508 =P 269,362.04 Since it appeared that Machine B has a lower cost of P 269,362.04 compared to Machine A of P 280,180.18, the choice should be Machine Bover Machine A inspite of the high cost of money. 0000 00002