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Compute the net investment cost for Session Inc

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Question - Session Inc. is expanding its manufacturing plant, which requires an investment of P4,000,000 in new equipment and plant modifications. The company's sales are expected to increase by P3,000,000 per year as a result of the expansion. Cash investments in current assets average 30% of sales; accounts payable and other current liabilities are 10% of sales. Trade in value of old machines is P600,000. Compute the net investment cost for Session Inc.

Reference no: EM133096955

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