Using the annual cost data from table 3, determine which project incurs less cost if...
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Accounting
Using the annual cost data from table 3, determine which project incurs less cost if the industry considers producing 7,500 units per year.
Table 3 Description Capital (RO) Life (years) Sales Quantity (units per year) Salaries per year (RO) Other fixed costs per year (RO) Wages per year (RO) Cost of materials per year (RO) Other variable costs per year (RO) Scrap value at the end of the year (RO) Cost of capital (%) Project-A #N/A 15 10,000 45,000 40,000 70,000 #N/A 35,000 #N/A #N/A Project-B #N/A 15 12,000 50,000 85,000 80,000 #N/A 40,000 #N/A #N/A
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