An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified if no maintenance will be acquired for the first 3 years, P12,000.00 per year for the next 7 years, and P48,000 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered.Answer. P325,293.20 6. An old machine cost P48,000.00 a year to maintain. What expenditures for anew machine is justified if no maintenance will be acquired for the first 3 years,P12,000.00 per year for the next 7 years, and P48,000 a year thereafter?Assume money to cost 4% compounded annually and no other costs to beconsidered.Answer. P325,293.20

Present Value Factor = 1(1+i)n where i = Money to Cost n = Period

An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified if no maintenance will be acquired for the first 3 years, P12,000.00 per year for the next 7 years, and P48,000 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered. Answer. P325,293.20

An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified if no maintenance will be acquired for the first 3 years, P12,000.00 per year for the next 7 years, and P48,000 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered. Answer. P325,293.20

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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