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income tax rate would be

income tax rate would be

FINANCIAL ACCOUNTING
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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Jill Republic Publishers, Inc. is considering replacing an old press that cost P600,000 six years ago with a new one that would cost P2,100,000. Shipping and installation would cost an additional P 50,000. The old press' book value is P120,000 and could be sold currently for P90,000. The increased production of the new press would increase inventories by P 150,000, accounts receivable by P100,000 and accounts payable by P120,000. Jill Republic's net initial investment for analyzing the acquisition of the new press assuming a 30% income tax rate would be P
Transcribed Image Text:Jill Republic Publishers, Inc. is considering replacing an old press that cost P600,000 six years ago with a new one that would cost P2,100,000. Shipping and installation would cost an additional P 50,000. The old press' book value is P120,000 and could be sold currently for P90,000. The increased production of the new press would increase inventories by P 150,000, accounts receivable by P100,000 and accounts payable by P120,000. Jill Republic's net initial investment for analyzing the acquisition of the new press assuming a 30% income tax rate would be P
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