A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows: A B C D E First Cost P 25,200 P 31,800 P 38,500 P 46,600 P 52,500 Power per...


A company is going to buy a new machine for manufacturing its products. Five machines are available. Data is as follows:
































































A



B



C



D



E



First Cost



P 25,200



P 31,800



P 38,500



P 46,600



P 52,500



Power per year



P 1,300



P 1,450



P 2,600



P 2,300



P 2,300



Labor per year



P 10,500



P 9,200



P 6,200



P 3,900



P 2,350



Maintenance per year



P 2,800



P 1,800



P 1,400



P 1,300



P 850



Taxes per year



3%



3%



3%



3%



3%



Life, years



5



5



5



5



5





If money is worth 15% before taxes to the company, which machine should be chosen?
HINT: Use Annual Cost Method




Jun 07, 2022
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