RCISES . The management of Sisa Fitness Center is planning to replace an old P30,000. The old machine has been depreciated to its salvage value slimming machine which was acquired 5 years ago at a cost of of P4,000. Sisa has found a buyer who is willing to purchase the old slimming machine for P6,000. The new machine will cost P50,000. Incidental costs of installation, freight and insurance will have to be incurred at total cost P10,000. Should the company decide the retain the old slimming machine, the same must be upgraded and subjected to major repairs. The estimated cost of this repairs expense amounts to P8,000. The

RCISES . The management of Sisa Fitness Center is planning to replace an old P30,000. The old machine has been depreciated to its salvage value slimming machine which was acquired 5 years ago at a cost of of P4,000. Sisa has found a buyer who is willing to purchase the old slimming machine for P6,000. The new machine will cost P50,000. Incidental costs of installation, freight and insurance will have to be incurred at total cost P10,000. Should the company decide the retain the old slimming machine, the same must be upgraded and subjected to major repairs. The estimated cost of this repairs expense amounts to P8,000. The

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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