Given the two machines’ data                                 Machine  A          Machine B First Cost                P8,000.00            P14,000.00 Salvage value         0                           2,000.00 Annual operation       3,000.00             2,400.00 Annual maintenance   1,200.00           1,000.00 Taxes and insurance   3%                       3% Life, years                   10                          15 Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B: ANSWER for ALTERNATIVE A: Blank 1 ANSWER for ALTERNATIVE B: Blank 2

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Given the two machines’ data

                                Machine  A          Machine B

First Cost                P8,000.00            P14,000.00

Salvage value         0                           2,000.00

Annual operation       3,000.00             2,400.00

Annual maintenance   1,200.00           1,000.00

Taxes and insurance   3%                       3%

Life, years                   10                          15

Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:

ANSWER for ALTERNATIVE A: Blank 1

ANSWER for ALTERNATIVE B: Blank 2

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