Question: SHOW YOUR COMPLETE SOLUTION AND WRITE YOUR SOLUTION ON A PAPER. Problem 1: A company is considering the purchase of a new equipment costing P260,000.

SHOW YOUR COMPLETE SOLUTION AND WRITE YOUR SOLUTION ON A PAPER. Problem 1: A company is considering the purchase of a new equipment costing P260,000. In addition, it will require the company to pay for the installation and delivery charges amounting to P20.000. Also, the company will invest on additional current assets (Receivables and Inventory) totaling P56,000. Currently the company have an old equipment with a net book value of P40,000 and a current market value of P45,000. The company is subject to the 30% income tax rate. Required: Compute the net investment cost of the company to the new equipment

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