A B C Php Php Php Php First cost 24,000 30,000 49,600 52,0 Power per year Labor per Php Php Php Php 1,300 1,360 2,400 2,02 Php Php Php Php 11,600 9,320 4,200 2,00 year Maintenance Php Php Php Php per year 2,800 1,900 1,300 700 Taxes and insurance 3% 3% 3% 3% life vears 5. 5. 5.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given problem:

A company is going to buy a new machine for manufacturing its product. Four different machines are available.

Money is worth 17% before taxes to the company. 

Using the annual cost method, what is the total annual cost of machine C?

A
В
C
D
Php
Php
Php
Php
First cost
24,000 30,000 49,600 52,000
Power per
year
Php
Php
Php
Php
1,300 1,360 2,400 2,020
Labor per
year
Maintenance Php
Php
Php
Php
Php
11,600 9,320 4,200 2,000
Php
Php
Php
per year
2,800 1,900 1,300 700
Taxes and
insurance
3%
3%
3%
3%
Life, years
5
5
Transcribed Image Text:A В C D Php Php Php Php First cost 24,000 30,000 49,600 52,000 Power per year Php Php Php Php 1,300 1,360 2,400 2,020 Labor per year Maintenance Php Php Php Php Php 11,600 9,320 4,200 2,000 Php Php Php per year 2,800 1,900 1,300 700 Taxes and insurance 3% 3% 3% 3% Life, years 5 5
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