QBS company wishes to replace its current equipment that was purchased 8years ago with the newer technology. System A will have a first cost of P1.6M, an operating cost of P70,000 per year, and a...


QBS company wishes to replace its current equipment that was purchased 8years ago with the newer technology. System A will<br>have a first cost of P1.6M, an operating cost of P70,000 per year, and a salvage value of P400,000 after its 4-year life. System B wll<br>have a first cost of P2.1M, an operating cost of P50,000 the first year with an expected increase of P3,000 per year thereafter, and<br>no salvage value after its 8-year life. On the basis of a future worth analysis at an interest rate of 12% per year, write the<br>ANSWER for ALTERNATIVE A: Blank 1<br>ANSWER for ALTERNATIVE B: Blank 2<br>

Extracted text: QBS company wishes to replace its current equipment that was purchased 8years ago with the newer technology. System A will have a first cost of P1.6M, an operating cost of P70,000 per year, and a salvage value of P400,000 after its 4-year life. System B wll have a first cost of P2.1M, an operating cost of P50,000 the first year with an expected increase of P3,000 per year thereafter, and no salvage value after its 8-year life. On the basis of a future worth analysis at an interest rate of 12% per year, write the ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2

Jun 07, 2022
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