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50) A refrigeration equipment fabricator sold an ice drop making machine which the condition that is case the machine will not be able to produce

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50) A refrigeration equipment fabricator sold an ice drop making machine which the condition that is case the machine will not be able to produce the guaranteed capacity, he will deduct from the agreed price of the machine the loss of revenue that the buyer will incur during the economic life of the machine which is 5 years, plus 12% cost of money. One month after the machine was delivered the buyer complained to the fabricator that he was not getting the guaranteed production. After a series of tests, it was determined that the buyer would be losing Php4,000 worth of unrealized sales per year. Assuming no increase in operation cost if guaranteed production is attained, how much must the buyer deduct from the agreed price of the machine

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