Homework Answers
EUAW of vendor A = -380000 * (A/P, 10%,4) + 125000
= -380000 * 0.315471 + 125000
= 5121.09 ~ 5121 (Nearest Dollar)
EUAW of vendor B = -280000 * (A/P, 10%,4) + 95000
= -280000 * 0.315471 + 95000
= 6668.17 ~ 6668 (Nearest Dollar)
As the EUAW of vendor B is more it should be selected
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