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Solve please a. Star Corporation is planning to buy a new equipment which costs Php 500,000, estimated life of 5 years with no salvage value.
Solve please a. Star Corporation is planning to buy a new equipment which costs Php 500,000, estimated life of 5 years with no salvage value. The installation cost is Php 75,000.00 with an additional working capital of Php 100,000. There is a Php 200,000 existing equipment of three years with a depreciable life of 5 years. This equipment can be resold for Php 150,000. Existing income tax rate is 35%. How much will be the initial investment of Star Corporation? b. A company is planning to invest in a project that requires Php 500,000 initial investment and is expected to provide annual after-tax inflow of Php 100,000. Company's acceptable maximum payback period is 6 years. Will the company pursue their plan on this project
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