Solution-How much is the amount of investment

How much is the amount of investment

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Reference no: EM132975163

Question - Dumb-Demented-Stupid acquired a machine that has a useful life of 10 years with no salvage value. The incremental annual net income before taxes is P 8,500. Income taxes are 25%. The PV of an annuity of P 1 for 10 years at 18% is 4.494. The annual depreciation is P 5,000. The NPV is positive P 1,119.25. How much is the amount of investment?

a. P 30,000

b. P 40,000

c. P 50,000

d. P 60,000

Reference no: EM132975163

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How much is the amount of investment

Reference no: EM132975163

Reference no: EM132975163

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