Hiraya Manawari Corporation plans to acquire an equipment costing PHP 600,000.00. Depreciation on the new equipment would be PHP 120,000.00 each year for 5 years. The annual cash flow before income tax from this equipment has been estimated at PHP 220,000.00. The tax rate is 25%.

1. Find the accounting rate of return.
2. Find the net present value if the minimum acceptable rate of return on investment is 15%.
3. Estimate the economic rate of return.
4. Comment on your results.