W Table Tools ECON 03 NVSU-FR-ICD-05-00 - Microsoft Word (Product Activation Failed) File Home Insert Page Layout References Mailings Review Design Layout ? Cut Find Arial Black 11 - A A E' FEE 24 T AaBbccI AaBb CcDc AaBbc AaBbcc AaB AaBbcc. AQBb CODE AA 4ac Replace BI I Normal U-be x x T No Spaci... Heading 1 Ea Copy Paste Format Painter Clipboard Heading 2 Title Subtitle Subtle Em... Change Styles W Select Editing Font Paragraph Styles H Gridlines 1 II. 2. . . . . . Direction: Solve the following economic problems systematically and select what alternative is justifiable. 1. An industrial plant is considering the purchase of a centrifugal pump. Three offers were received and basis of selection have been tabulated as follows: Offer A P60,000 3 Offer B P96,000 5 Offer C P120,000 10 Price of pump Economic life, years Salvage value at end of economic life Yearly maintenance cost 5,000 10,000 8,000 10,000 6,000 5,000 If cost of money is 14%, what offer would you recommend to be purchased? Use the rate of return method, the annual cost method, present worth method and equivalent uniform annual cost method for the evaluation. Page 1 of 16 Words: 4,343 150% U