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...


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%



5%



8%



Net Annual Benefit



P155 000.00



P145 000.00



P170 000.00



Useful Life



8 years



16 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%)



Jun 04, 2022
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