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Question - Assume that there is a machine, with a cost of P197,295, depreciated on a straight-line basis, with a book value of P43,567 and with a remaining useful life of 3 years. The old machine has a P1,969 disposal value now; in 3 years its disposal value will be zero. A new machine is available that will dramatically reduce operating costs. Annual revenue of P103,260 will not change regardless of the decision. The new machine will cost P55,486 have zero disposal value at the end of its 3-year life. The new machine promises to slash variable operating costs from P80,000 per year to P39,559 per year.
Required - What is the total cost if the equipment will be replaced? Consider that old machine can be sold. Use comma as necessary. Answer should only be an integer. No need to indicate currency in answer.
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