The Swan Company plans to acquire a new equipment costing P 1,800,000 to replace the equipment that is now being used. The terms of the acquisition are 3/30, n/90. Freight charges on the new equipment are estimated at P 34,500 and insurance cost will amount to P 21,000. If the new equipment is acquired, operations will be expanded and this will require additional working capital of P 375,000. The old equipment has a net book value of P 450,000 and will be sold for P 270,000. If the new equipment is not purchased, the old equipment must be overhauled at a cost of P 135,000. This cost is tax deductible for tax purposes in the year incurred. Tax rate is 35%.

Required: Compute for the net investment.