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A contractor needs a truck for his project. Two suppliers have furnished the following data: Alternative B First Cost P1,200,

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Solution

Answer: (b) 8167.81

Explanation: Two suppliers have been furnished their proposal, one for 4 years and another for 8 years. As the life span is unequal, we have to find out our answer using Equated Annual Cost as follows,

Alternālie A(P) AHemative A (P). 2,000,000 Trifial Cost 200,000 120,000. Amaualespemer Salvayestatun 180,000 180,000 L00,000

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