b. Both X andY equipment to replace one of its existing five-year useful life, with a 9. Badette, Inc. has an opportunity to acquire a new equipments. The new equipment would cost P900,000 and has a zero terminal disposal price. Variable operating costs would be P1 million per year. The present equipment has a book value of P500,000 and a remaining life of five years. Its disposal price now is P50,000 but would be zero after five years. Variable operating costs would be P1,250,000 per year Considering the five years in total but ignoring the time vatue of money and income taxes, Badette should a. replace due to P400,000 advantage b. not replace due to P150,000 disadvantage d. not replace due to P100,000 disadvantage. replace due to P350,000 advantage c