NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected to have a useful life of 8 years and no salvage value. Straight-line depreciation is to be used. The present value of the cash flow generated by the machine was calculated to be P284,920 using a time-adjusted rate of return of 15%. Use 3 decimal places for the PV factors. What was the annual cash flow, net of income taxes, that was used in the calculation of the present value? *

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected
to have a useful life of 8 years and no salvage value. Straight-line depreciation is to be used.
The present value of the cash flow generated by the machine was calculated to be P284,920
using a time-adjusted rate of return of 15%. Use 3 decimal places for the PV factors. What was
the annual cash flow, net of income taxes, that was used in the calculation of the present
value? * A
Sample format: 11,111
Transcribed Image Text:NUBD Co. purchased a new machine on January 1, 2021 for P350,000. The machine is expected to have a useful life of 8 years and no salvage value. Straight-line depreciation is to be used. The present value of the cash flow generated by the machine was calculated to be P284,920 using a time-adjusted rate of return of 15%. Use 3 decimal places for the PV factors. What was the annual cash flow, net of income taxes, that was used in the calculation of the present value? * A Sample format: 11,111
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