A company used a type of truck which cost P2 million with life of 3 ears and final salvage value of P320,000. How much could the company afford to pay for another type of tuck with the same purpose whose life is 4 years with a final salvage value of P400,000. If money is worth 4%.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 8P
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A company used a type of truck which cost P2 million with life of 3 ears and final
salvage value of P320,000. How much could the company afford to pay for
another type of tuck with the same purpose whose life is 4 years with a final
salvage value of P400,000. If money is worth 4%.
P2,805,120
P2,642,320
P2,718,480
P2,585,870
Transcribed Image Text:A company used a type of truck which cost P2 million with life of 3 ears and final salvage value of P320,000. How much could the company afford to pay for another type of tuck with the same purpose whose life is 4 years with a final salvage value of P400,000. If money is worth 4%. P2,805,120 P2,642,320 P2,718,480 P2,585,870
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