CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: A B C Acquisition Cost P XXXXXXXXXX P XXXXXXXXXX P...



  1. CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates:












































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



If at the end of eight years alternative A could be replaced with an identical machine having the same cost and benefits, determine the alternative to be selected using present worth analysis and a 14% MARR.


(Ans. PTA= -P5005.80; PTB= P24 536.06; PTC= -5108.53; select alternative B)



Jun 05, 2022
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