1. Wheeller Company manufactures copier equipment and has the opportunity to replace one of its existing machine with a new model. The existing machine has a net book value of P120, 000 and a market value of P60, 000. It has an estimated remaining life of four years, at which time it will have no salvage value. The company uses straight-line depreciation of P30, 000 per year on the machine, and its annual cash operating cost is P280, 000. The new model costs P500, 000 and has a four-year estimated life with no salvage value. Its annual cash operating cost is estimated at P160, 000. The firm will use straight-line depreciation. The tax rate is 40% and the cost of capital is 12%. The purchase of the new, more efficient machine will enable the company to reduce its investment in inventory by P80, 000. Required: Determine the investment required to purchase the new machine

2. Roar Company is a medium-sized producer of lamp. During the year, a new line called "Torolin" was made available to MACE's customers. The break-even point for sales of Torolin is P200, 000 with a contribution margin of 40%. Assuming that thee profit for the Torolin line during the year amounted to P100, 000, total sales during the year would have amounted to: