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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