2) Activity 3: Skill -building Activities Puge Co. is considering replacing an old press that cost $800,000 six years ago with a new one costing P2,250,000. Shipping and installation would cost an additional #200,000. The old press has a book value of P150,000 and could be sold currently for #50,000. An additional working capital of P60,000 is required to operate the asset. Puge's net initial investment for analyzing the acquisition of the new press assuming a 30 % income tax rate would be? Check your answers against the Key to Corrections found at the end of this SAS . Be sure to complete each activity before looking . Write your score on your paper 3) Activity 4: What I Know Chart , part 2 Let us see how your knowledge changed by reviewing the questions in the What I Know Chart from Activity 1. Write your answers to the questions based on what you now know in the third column of the chart. 4) Activity 5: Check for Understanding Kyuti, owner of Cutie Company, was approached by a local dealer in air conditioning units. The dealer proposed replacing Cutie's old cooling system with a modern, more efficient system. The cost of the new system was quoted at P100,000, but it would save P20,000 per year in energy costs. The estimated life of the new system is 10 years, with no salvage value expected. Excited over the possibility of saving P20,000 per year and having a more reliable unit, Ms. Kyuti requested an analysis of the project's economic viability . All capital projects are required to eam at least the firm's cost of capital, which is 10 percent. Income tax rate is 30% of taxable income