7. A company considering two alternatives with regards to an equipment which it needs. The alternatives are as follows: Alternative A: Purchase Cost of equipment Salvage value Daily operating cost Economic life, years Alternative B: Rental at P1,500 per day P700,000 100,000 500 10 At interest, how many days per year must the equipment be in use if the Alternative A is to be chosen. Ans. 152 days

7. A company considering two alternatives with regards to an equipment which it needs. The alternatives are as follows: Alternative A: Purchase Cost of equipment Salvage value Daily operating cost Economic life, years Alternative B: Rental at P1,500 per day P700,000 100,000 500 10 At interest, how many days per year must the equipment be in use if the Alternative A is to be chosen. Ans. 152 days

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 8Q

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