Compute for the rate of return


Assignment Task: Two different types of hydraulic equipment are being considered for a certain power plant. Machine A has a ?rst cost of P12000 and a salvage value of P1500, life is 6 years and has an annual maintenance and operating cost of P900. Machine B has a ?rst cost of P13,600 life of 8 years with no salvage value. Annual operating cost is P700. Compute for the rate of return and suggest which machine should be purchased if money is worth 7%

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Compute for the rate of return
Reference No:- TGS03219123

Expected delivery within 24 Hours