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Reverie Company purchased a machine for P750,000 with a useful life of six years and P20,000 salvage value. The machine is being depreciated using the
Reverie Company purchased a machine for P750,000 with a useful life of six years and P20,000 salvage value. The machine is being depreciated using the straight-line method. It is expected to produce an annual operating cash flow of P210,000. Assuming that Reverie uses a cost of capital of 11% and a tax rate of 20%, what is the machines net present value?
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