Solution-What the replacement machine would be

What the replacement machine would be

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Reference no: EM132809387

Problem 1: Winneconne Company is considering to replace a machine with book value of P400,000, with remaining useful life of 5 years, and annual straight-line depreciation of P80,000. The existing machine has a current market value of P400,000. The replacement machine would cost P550,000, have a 5-year life, and save P75,000 per year in cash operating costs. If the replacement machine would be

A. P90,000
B. P150,000
C. P330,000
D. P550,000

Reference no: EM132809387

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What the replacement machine would be

Reference no: EM132809387

Reference no: EM132809387

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