PLEASE WRITE IT ON PAPER. DONT USE EXCEL OR ANY APPLICATIONS. THANK YOU.

In the Bibo Centro Company ( a leather products distributors), decisions regarding approval of proposals for capital investment are based upon a stipulated MARR of 18% per year. The five packaging devices listed in the table below were compared, assuming a 30-year life and zero market value for each at that time. Which one (if any) should be selected? Make any additional calculations that you think are needed to make a comparison ( incremental analysis), using the ERR method. Let epsilon = 18%.

Packaging Equipment A B C D E Capital Investment (Php) 38,000 50,000 55,000 60,000 70,000 Annual Revenues less Expenses(Php) 11,000 14,100 16,300 16,800 19,200 ERR (%) 21.1 20.8 21.4 20.7 20.5