H20 Company, engaged in selling bottled water, is evaluating two possible investments 6 years A Delivery truck Acquisition cost P 570,000 Useful life The truck can deliver an additional 150,000 bottles of water per year. The contribution margin per bottled is P 2.00. The acquisition of the new truck will cause an increase in fixed operation costs, excluding depreciation, of P 5 per kilometer The truck is expected to run at 20,000 kilometers per year. B. Bottling machine Acquisition cost P 450,000 Useful life The use of the new bottling machine would enable the company to save labor time by 20 hours per day. The labor rate per hour is P 40 and there are 280 operating days in a year. 6 years For capital investment projects, the company's minimum desired rate of return is 10%. The company pays income tax at 32% of income before tax . Required: Compute the following Payback period of each project b. Net present value of each project. Profitability index of each project d. Internal rate of return of each project