A firm purchased 12-years ago a computerized machine worth P 641,906. As the life of...
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A firm purchased 12-years ago a computerized machine worth P 641,906. As the life of the machine was 20 years, funds are reserved based on Declining Balance method of depreciation. Now the firm wishes to replace it with a current model possessing several advantages. The firm can sell it today for P 54,906. The new machine will cost P 1,255,605. How much new capital will be required to make the purchase? Assume k = 20%.
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