A certain machinery costs P 1,021,778 which will last for 18 years with a salvage value of P 144,755. Money is worth 20%. If the owner decides to sell it after using it for 6 years, what should his price be so that he will not lose or gain financially in the transaction?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A certain machinery costs P 1,021,778
which will last for 18 years with a salvage
value of P 144,755. Money is worth 20%. If
the owner decides to sell it after using it
for 6 years, what should his price be so
that he will not lose or gain financially in
the transaction?
Transcribed Image Text:A certain machinery costs P 1,021,778 which will last for 18 years with a salvage value of P 144,755. Money is worth 20%. If the owner decides to sell it after using it for 6 years, what should his price be so that he will not lose or gain financially in the transaction?
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