$1.$ A hospital is considering to purchase a diagnostic machine costing $$800000.$ The projected life of the machine is $8$ years and has an expected salvage value of P$60000$ at the end of $8$ years. The annual operating cost of the machine is

$$75000.$ It is expected to generate revenues of $$400000$ per year for eight years. Presently, the hospital is outsourcing the diagnostic work and earning commission income of $$120000$ per annum; net of taxes.