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XYZ Company buys P1 million equipment. It has a useful life of 5 years and no residual value. The Company sell the machine for

XYZ Company buys P1 million equipment. It has a useful life of 5 years and no residual value. The Company sell the machine for P800,000 at the end of year 3. The Company has 30% tax rate and its cost of capital is 11%. Compute the net present value of the sale transaction.

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