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Light Corporation is considering the production of a new product line which will require an investment of P 2,000,000 with P 200,000 residual value. The
Light Corporation is considering the production of a new product line which will require an investment of P 2,000,000 with P 200,000 residual value. The investment will have a useful life of ten years during which annual cash inflows before income taxes and depreciation of P 1,600,000 is expected. The income tax rate is 40% and straight-line method of depreciation will be used. Match each item to a choice Choices: Compute the after tax net income. Compute the average ARR. Compute the simple ARR. 821,000 74.64% #39.60% 34.50% 41.05% #792,000 # 72.00%
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