1) Sunglow Company invested P180,000 in a new machine. The machine will generate cash flows before taxes at year-end of P90,000, P80,000 and P70,000 for the next three years. The company uses 15% cost of capital. What is the net present value of purchasing the machine?

A. P25,826

B. P9,230

C. P60,000

D. P4,778

2) TWZ Air Services is now in the final stage of the project. The equipment originally cost P250 million of which 80% has been depreciated. TWZ can sell the used equipment today for P5 million, and its tax rate is 35%. What is the equipment's after tax salvage value?

A. P23 million

B.P18 million

C.P19.4 million

D. P14.4 million