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A plastic extrusion machine cost P120,000 was purchased 4 years ago and is estimated to have a service life of 6 more years with salvage

A plastic extrusion machine cost P120,000 was purchased 4 years ago and is estimated to

have a service life of 6 more years with salvage value of P15,000. If it is to replaced by a new

machine and its trade-in-value is P40,000. Find the sunk cost if money worth 10% per annum.

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