Mr. Tito Puno is thinking of buying a machine worth P300,000 with a scrap value of...
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Mr. Tito Puno is thinking of buying a machine worth P300,000 with a scrap value of P40,000 after 5 years. It is expected to generate a net income before taxes o P80,000 a year with an income tax rate of 30%. The cost of capital is 10% 1. What is the annual cash return? What is the payback period? 2. 3. What is the net present value? Mr. Tito Puno is thinking of buying a machine worth P300,000 with a scrap value of P40,000 after 5 years. It is expected to generate a net income before taxes o P80,000 a year with an income tax rate of 30%. The cost of capital is 10% 1. What is the annual cash return? What is the payback period? 2. 3. What is the net present value?
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To calculate the annual cash return payback period and net present value NPV of the machine purchase ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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