Equipment for capital investment planning


Green Company plans to purchase new equipment costing P 140,000 plus freight and installation costs estimated at P 23,000. The purchase of the new equipment will prevent the company from having to incur costs of P 30,000 to repair equipment now in service. Depreciation on the new equipment has been estimated at P 20,000 each year. The income tax rate is 40%. The net investment in the new equipment for capital investment planning is ??

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Accounting Basics: Equipment for capital investment planning
Reference No:- TGS061281

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