tax rate: 30%

Exercise 9-11 The Molding Department of the Cabuyao, Inc. has been investigating the savings before income tax from the use of this equipment has been estimated at a new unit of equipment at a cost of P120,000. Cash cost possibility of acquiring P50,000 a year for a period of 4 years. At the end of 4 years, the equipment will have no salvage value. The minimum acceptable rate is 12% discounted rate. REQUIRED: 1. Calculate the NPV under straight-line under straight-line depreciation. 2. Calculate the NPV under SYD depreciation. 3. Explain how a bookkeeping method can help to improve the rating of a capital investment project