Win Corporation is considering to replace its old equipment with a new one. The old equipment had a net book value of P100,000, 4 remaining useful life with P25,000 depreciation each year. The old equipment can be sold at P80,000. The new equipment costs P160,000, have a 4-year life. Cash savings on operating expenses before 40% taxes amount to P50,00o per year. What is the amount of investment in the new equipment? O P160,000 O P72,000 O P80,000 O P68,000

Win Corporation is considering to replace its old equipment with a new one. The old equipment had a net book value of P100,000, 4 remaining useful life with P25,000 depreciation each year. The old equipment can be sold at P80,000. The new equipment costs P160,000, have a 4-year life. Cash savings on operating expenses before 40% taxes amount to P50,00o per year. What is the amount of investment in the new equipment? O P160,000 O P72,000 O P80,000 O P68,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...

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