Mega Company purchased 12 years ago a Mega Pen for P50,000. As the life of the Mega Pen was 20 years, a straight-line depreciation reserve has been provided on that basis. Now the company wishes to replace the old pen with newly designed Mega Pen possessing several advantages. It can sell the old Mega Pen for P10,000. The new Mega Pen will cost P70,000. How much new capital will be required to make the purchase? P20,000 O P30,000 P40,000 P50,000

Mega Company purchased 12 years ago a Mega Pen for P50,000. As the life of the Mega Pen was 20 years, a straight-line depreciation reserve has been provided on that basis. Now the company wishes to replace the old pen with newly designed Mega Pen possessing several advantages. It can sell the old Mega Pen for P10,000. The new Mega Pen will cost P70,000. How much new capital will be required to make the purchase? P20,000 O P30,000 P40,000 P50,000

Name: PLS ANSWER ASAP THANKS Mega Company purchased 12 years ago a Mega Pen
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Description: PLS ANSWER ASAP THANKS Mega Company purchased 12 years ago a Mega Pen for P50,000. As the life of the Mega Pen was 20years, a straight-line depreciation reserve has been provided on that basis. Now the company wishesto replace the old pen with newly

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 12P

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