The Municipal Refuse Collection Vehicle (MRCV) has an initial purchase price of P84,000 and an estimated useful life of 6 years. During this period, the Salvage Value (SV) and Book Value (BV) are both assumed to be zero at the end of the asset’s useful life. Each year, before-tax cash flow is expected to be +P18,000 for a total of +P108,000 over its 6 year lifespan.
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