From the given values below, which machine should be selected using (a) Present worthMethod and (b) Future worth Method if interest rate is 10% per year?MachineABInitial Cost (Php)Annual Operating Cost146,00015,00080,00010,0003220,00010,00075,00025,000Annual RevenueSalvage ValueUseful Life (years)6

The present worth and future worth are methods to asses the feasibility of projects under…

Method and (b) Future worth Method if interest rate is 10% per year? Machine nitial Cost (Php) Annual Operating Cost A B 146,000 220,000 15,000 80,000 10,000 10,000 75,000 25,000 Annual Revenue Salvage Value Jseful Life (years) 3 6

Method and (b) Future worth Method if interest rate is 10% per year? Machine nitial Cost (Php) Annual Operating Cost A B 146,000 220,000 15,000 80,000 10,000 10,000 75,000 25,000 Annual Revenue Salvage Value Jseful Life (years) 3 6

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 3CMA

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Question

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From the given values below, which machine should be selected using (a) Present worth
Method and (b) Future worth Method if interest rate is 10% per year?
Machine
A
B
Initial Cost (Php)
Annual Operating Cost
146,000
15,000
80,000
10,000
3
220,000
10,000
75,000
25,000
Annual Revenue
Salvage Value
Useful Life (years)
6

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