NUBD Co. is planning to acquire a new machine at a total cost of P360,000. The estimated life of the machine is 6 years with no salvage value. The straight-line method of depreciation will be used. NUBD estimates that the annual cash flow from operations, before income taxes, from using this machine amounts to P90,000. Assume that NUBD's cost of capital is 8% and the income tax rate is 40%. (Use 3 decimal places for the PV factors)What would be the payback period for the machine? * o Round-off to 1 decimal place. Sample format: 1.1
NUBD Co. is planning to acquire a new machine at a total cost of P360,000. The estimated life of the machine is 6 years with no salvage value. The straight-line method of depreciation will be used. NUBD estimates that the annual cash flow from operations, before income taxes, from using this machine amounts to P90,000. Assume that NUBD's cost of capital is 8% and the income tax rate is 40%. (Use 3 decimal places for the PV factors)What would be the payback period for the machine? * o Round-off to 1 decimal place. Sample format: 1.1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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