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10. Tam Co. is negotiating for the purchase of equipment that would cost P100,000 with the expectation that P25,000 per year could be saved
10. Tam Co. is negotiating for the purchase of equipment that would cost P100,000 with the expectation that P25,000 per year could be saved in after-tax cash costs if the equipment were acquired. The equipment's estimated useful life is 10 years, with no residual value and would be depreciated by the straight-line method. Tam's predetermined minimum desired rate of return is 14%.
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