Net cost of investment Century Corporation is planning to purchase a new machine costing P4,780,000, freight and installation costs amounting to P145,000. The old unit will be given a trade-in allowance of P1200,000 Other assets that are to be retired as a result of the acquisition of th: a new machine can be salvaged and sold for P12,000. The loss on the retirement of these other assets amounting to P20,000 will reduce taxes by P8,000. If the new machine is not purchased, extensive repairs on the old machine will have to be made at an estmated cost of P450,000. This cost can be avoided by purchasing the new machine. Additional gross working capital of P350,000 will be needed to support operations planned with the new machine. Required The net investment assigned to the new machine for decision analysis