Solution-What will be the bailout period for the new machine

What will be the bailout period for the new machine

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Reference no: EM132971351

Question - Womark Company purchased a new machine on January 1 of this year for P90,000, with an estimated useful life of 5 years and a salvage value of P10,000. The machine will be depreciated using the straight-line method. The machine is expected to produce cash flow from operations, net of income taxes, of P36,000 a year in each of the next 5 years. The new machine's salvage value is P20,000 in years 1 and 2, and P15,0000 in years 3 and 4. What will be the bailout period (rounded) for the new machine?

Reference no: EM132971351

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What will be the bailout period for the new machine

Reference no: EM132971351

Reference no: EM132971351

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