CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates: A B C Acquisition Cost P700 000.00 P850 000.00 P1000 000.00 Shipping Cost 5% 5% 8% Net Annual Benefit P155 000.00 P145 000.00 P170 000.00 Useful Life 8 years 16 years 16 years Salvage Value P35 000.00 P70 000.00 P80 000.00 If at the end of eight years, alternative A could be replaced with an identical machine having the same cost and benefits, determine the alternative to be selected using present worth analysis and a 14% MARR. (Ans. PTA= - P5005.80; PTB = P24 536.06; PTC = - P5108.53; select alternative B) Determine the best printing machine using ROR analysis for the data given.(Ans. Select machine B; iB-A= 15.34% ; iC-B: =10.9%)
CLC Publishing is considering the purchase of an offset printing machine. A study of three available alternatives shows the following estimates:
A B C
Acquisition Cost P700 000.00 P850 000.00 P1000 000.00
Shipping Cost 5% 5% 8%
Net Annual Benefit P155 000.00 P145 000.00 P170 000.00
Useful Life 8 years 16 years 16 years
Salvage Value P35 000.00 P70 000.00 P80 000.00
If at the end of eight years, alternative A could be replaced with an identical machine having the same cost and benefits, determine the alternative to be selected using present worth analysis and a 14% MARR. (Ans. PTA= - P5005.80; PTB = P24 536.06; PTC = - P5108.53; select alternative B)
Determine the best printing machine using ROR analysis for the data given.(Ans. Select machine B; iB-A= 15.34% ; iC-B: =10.9%)
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