Ruby, Inc. is considering on replacing its old machine. machine with a new, high-performing Information in relation to this decision is as follows: Old Machine: Cost, P200,000
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From the problem below :
1. For capital budgeting purposes, what is the net investment in the new, high-performing machine?
A. P186,400
B. P185,000
C. P169,600
D. P148,000
2. What is the payback period?
A. 4.49 years
B. 5.24 years
C. 5.76 years
D. None from the choices
3. Compute the new, high-performing machine's net present value.
A. P1,200
B. P15,892
C. P28,025
D. P6,729
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