5. A manufacturing company is faced with a choice of repairing an old machine at a cost of P12.000 or replace it with a new one at P50,000. It is estimated that the repaired machine will last for 5 years after which replacement will be necessary. Present salvage value of the old machine is P10,000 and its salvage value after 5 year's will be P5,000. It is estimated that the new machine will last for 20 years and will have a salvage value of P15,000. The yearly maintenance of the new machine will be P500 less than the old At 6% interest, which is more economical, repair or replace? a. Annual cost, repair = P3,358 47 c. Annual cost repair = P5.358.47 b. Annual cost, repair = P4,835.74 d. Annual cost, repair = P5,853.47