The firm plans to acquire a new equipment costing ₱1,340,000 to replace the equipment that is now being used. Freight charges on the new equipment are estimated at ₱75,000 and it will cost ₱90,000 to...

The firm plans to acquire a new equipment costing ₱1,340,000 to replace the equipment that is now being used. Freight charges on the new equipment are estimated at ₱75,000 and it will cost ₱90,000 to install. Special attachment to be used with this unit will be needed and will cost ₱64,000. If the new equipment is acquired, operations will be expanded and this will require additional working capital of ₱310,000. The old equipment had a net book value of ₱45,000 and will be sold for ₱25,000. If the new equipment is not purchased, the old equipment must be overhauled at a cost of ₱320,000. This cost is deductible for tax purposes in the year incurred. Tax rate is 30%. The net cost of investment would be?