How much is the net present value of the intangible benefits

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Question - Peru Corporation is evaluating the acquisition of an equipment that will save P700,000 a year in direct labor and inventory carrying costs. This equipment costs P3,000,00 and is expected to have a 12-year life with no residual value. Management anticipates intangible benefits this equipment will provide such as greater flexibility higher quality of output, and a positive learning experience in automation. The company s minimum return on assets is 16%. How much is the net present value of the intangible benefits?

Reference no: EM132977539

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