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Lor Industries is analyzing a capital investment proposal for new machinery to produce anew product over the next ten years. At the end of the
Lor Industries is analyzing a capital investment proposal for new machinery to produce anew product over the next ten years. At the end of the ten years, the machinery must bedisposed of with a zero net book value but with a scrap salvage value of P20,000. It willrequire some P30,000 to remove the machinery. The applicable tax rate is 35%. Theappropriate end-of-life cash flow based on the foregoing information is A. Inflow of P30,000. C. Outflow of P10,000.B. Outflow of P6,500. D. Outflow of P17,000
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