A company is considering three types of equipment for its manufacturing plant. Pertinent data are as follows: First cost Annual operating cost Annual labor cost Insurance and property taxes Payroll taxes Estimated life Type A P170,000 P32,000 P55,000 2% 4.5% 10 Type B P210,000 P26,000 P45,000 2% 4.5% 10 Type C P260,000 P22,000 P36,000 2% 4.5% 10 If the minimum required rate of return is 15%, which equipment should be selected? Use: By the Annual Cost Method (15 pts.) 2) A machine was purchased 5 years ago at a cost of P 65,000. It was estimated to have a useful life of 10 years, with a salvage value of P3,000. It is now going to be replaced by a new machine costing P73,000 and a P32,000 trade-in will be allowed for the old machine. Determine the sunk cost if depreciation has been computed by the (a) straight-line method (b) sinking fund method at 13%, and (c) SYD method. (d) double declining balance method. (5 pts each)