A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the life of the planner was 20 years, a depreciation reserve has been provided on that basis. Now the owner wishes to replace the old planner by a newly – designed planner with several advantages. The old planner can sell for P 10,000. If the new planner costs P 70,000, how much new capital will be required to make the purchase if the depreciation is computed using SL Method SF Method at 10% SYD Method **please do not use excel formulas. thank you!

A heavy planner was purchased 12 years ago for P 50,000 with no salvage value. As the life of the planner was 20 years, a depreciation reserve has been provided on that basis. Now the owner wishes to replace the old planner by a newly – designed planner with several advantages. The old planner can sell for P 10,000. If the new planner costs P 70,000, how much new capital will be required to make the purchase if the depreciation is computed using SL Method SF Method at 10% SYD Method **please do not use excel formulas. thank you!

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 10P

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