Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Given the two machines' data
Machine A
Machine B
First Cost
P8,000.00
P14,000.00
Salvage value
Annual operation
2,000.00
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
Transcribed Image Text:Given the two machines' data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value Annual operation 2,000.00 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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