Question
Dumb-Demented-Stupid acquired a machine that has a useful life of 10 years with no salvage value. The incremental annual net income before taxes is P
Dumb-Demented-Stupid acquired a machine that has a useful life of 10 years with no salvage value. The incremental annual net income before taxes is P 8,500. Income taxes are 25%. The PV of an annuity of P 1 for 10 years at 18% is 4.494. The annual depreciation is P 5,000. The NPV is positive P 1,119.25. How much is the amount of investment?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
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