Tracey Company purchased new machinery on January 2, 2021, and incurred the following: Invoice price of machinery P1,500,000; Cash discount is taken on the machinery, P75,000; Freight on the new machine, P25,000; Actual cost of removing old machinery P2,500 but the existing provision is P3,000; Installation cost of the new machine, P25,000. Operating cost during the first month of regular use, P150,000. What is the cost of the new machinery?