Miscora enterprise is assessing an expansion proposal of a business to upscale its projection capacity. The project need a new equipment that will cost P54 million added with the required investment of P6.0 million for its net operating capital. Using the PH(Philippines) tax rate of 30% for corporation, determine the following: a. What is the needed initial cash outlay for the project? b. Miscora had already spent P500,000 for the related feasibility study of the project. Will this affect your answer on “item a”? Discuss. c. The company has an existing unused building and it can be used to house the new equipment. The building can be sold for PhP10.0 million after commissions and taxes. Will this affect your answers on items “a and b”? Discuss.
Miscora enterprise is assessing an expansion proposal of a business to upscale its projection capacity. The project need a new equipment that will cost P54 million added with the required investment of P6.0 million for its net operating capital. Using the PH(Philippines) tax rate of 30% for corporation, determine the following:
a. What is the needed initial cash outlay for the project?
b. Miscora had already spent P500,000 for the related feasibility study of the project. Will this affect your answer on “item a”? Discuss.
c. The company has an existing unused building and it can be used to house the new equipment. The building can be sold for PhP10.0 million after commissions and taxes. Will this affect your answers on items “a and b”? Discuss.
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