Engineering Board Exam Reviewer · Replacement Analysis · medium
A new machine (the challenger) costs P250,000, lasts 10 years, has a salvage value of P30,000, and annual operating costs of P10,000. Find its equivalent uniform annual cost at 12% interest.
- P54,246.04
- P52,536.52
- P48,936.52
- P32,000
Answer
B. P52,536.52
Solution
EUACC=(250,000-30,000)(A/P,12%,10)+30,000(0.12)+10,000=220,000(0.176984)+3,600+10,000=P52,536.52.
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