A company used a type of truck which cost P2 million with life of 3 ears and final salvage value of P320,000. How much could the company afford to pay for another type of tuck with the same purpose whose life is 4 years with a final salvage value of P400,000. If money is worth 4%.

A company used a type of truck which cost P2 million with life of 3 ears and final salvage value of P320,000. How much could the company afford to pay for another type of tuck with the same purpose whose life is 4 years with a final salvage value of P400,000. If money is worth 4%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A company used a type of truck which cost P2 million with life of 3 ears and final
salvage value of P320,000. How much could the company afford to pay for
another type of tuck with the same purpose whose life is 4 years with a final
salvage value of P400,000. If money is worth 4%.
P2,805,120
P2,642,320
P2,718,480
P2,585,870

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