An old machine has a first cost of P10M and an annual operating cost of P2,096,177 and a useful life of 5 years with a salvage value of P1M. On its 3rd year, the company thinks of selling it at P7,794,395 and replaces it with a new machine having a cost of P7.5M and an annual operating cost of P0.4M during a 6-year life and a salvage value of PO.5M. With an interest of 21% cpd.-a., what is the Annual Equivalent Cost of the old Machine? An old machine has a first cost of P10M and an annual operating cost of P2,096,177 and a useful life of 5 years with a salvage value of P1M. On its 3rd year, the company thinks of selling it at P7,794,395 and replaces it with a new machine having a cost of P7.5M and an annual operating cost of P0.4M during a 6-year life and a salvage value of PO.5M. With an interest of 21% cpd.-a., what is the Annual Equivalent Cost of the old Machine