A certain machinery costs Php60,000, last 12 years with a salvage value of Php5,000. Money is worth 4% for SFM. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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A certain machinery costs Php60,000, last 12 years with a salvage value of Php5,000. Money is worth 4% for SFM. If the owner decides to sell it after using it for 5 years, what should his price be so that he will not lose or gain financially in the transaction?

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