A P22,000,000 chemical plant had an estimated life of 10 years and a projected scrap value of P2,000,000. After 5 years of operation, an explosion made it a total loss. How much money would have to be raised to put a new plant costing P30M if depreciation reserved is maintained during its 5 years of operation using: SFM at 6% interest DBM SYDM

A P22,000,000 chemical plant had an estimated life of 10 years and a projected scrap value of P2,000,000. After 5 years of operation, an explosion made it a total loss. How much money would have to be raised to put a new plant costing P30M if depreciation reserved is maintained during its 5 years of operation using: SFM at 6% interest DBM SYDM

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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Heidi Company is considering the acquisition of a machine that costs $536,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash inflow of $104,000, and annual operating income of $84,095. The estimated cash payback period for the machine is (round to one decimal point)? Oa. 5.2 years Ob. 6.4 years Oc. 6.0 years Od. 6.5 years
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