Potato Ltd. has recently acquired an item of machine with the following details:

List price P480,000 Trade discount 12.5% on list price Import Duties 12,000 Transportation costs 5,500 Pre-production testing cost 25,000 Installation cost 15,000

At the end of its useful life, there will be compulsory costs of P30,000 to dismantle the machine and P6,000 to restore the site to the original condition. The discount rate at the date of purchased is 4% and the useful life of the asset is 10 years.

How much is the initial cost of the machine?