JRT Publishers is contemplating of installing a labor-saving printing equipment. It has a choice between two different models. Model A will cost P1,452,000 while model B will cost P1,460,000. The anticipated repair costs for each model are as follows: Model A: P152,000 at the end of 9th year Model B: P60,000 at the end of 5th year and P80,000 at the end of 10th year The two models are alike in all other respects. If the publisher is earning a 7% return of its capital, which model should be purchased? Why?