38. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates:
Determine the best printing machine using ROR analysis for the data given.
A
B
C
Acquisition Cost
P700 000.00
P850 000.00
P1 000 000.00
Shipping Cost
5%
8%
Net Annual Benefit
P155 000.00
P145 000.00
P170 000.00
Useful Life
8 years
16 years
Salvage Value
P35 000.00
P70 000.00
P80 000.00
(Ans. Select machine B; iB-A= 15.34%; iC-B=10.9%)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here