Question: Solve using the Present Value and Annual Equivalent Cost Methods. Select the best purchase option. A company wishes to purchase a plating labeling machine, for

Solve using the Present Value and Annual Equivalent Cost Methods. Select the best purchase option.

A company wishes to purchase a plating labeling machine, for which it received three quotations (in US dollars), the conditions of which are shown in the attached commercial table. The company plans to make use of a bank loan for the acquisition of the machine, which has an interest rate of 29.32% plus 10% for risk. Proceed to evaluate the acquisition in order to determine which offer is the most viable.

Alternativa A Alternativa B Alternativa C
Initial Cost $27,000.00 $31,000.00 $42,000.00
Operating Anual Cost $4,500.00 $3,000.00 $2,000.00
Rescue Value $1,100.00 $2,600.00 $3,000.00
Service Life 52 27 18

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