The estimated initial investment cost, and the annual operating and maintenance costs (based on 1,500 hours of operation per year), for four alternative designs of a diesel-powered air compressor are shown, as well as the estimated salvage value for each design at the end of the common 5-year useful life. The perspective of these cost estimates is that of the typical user (construction company, plant facilities department, government highway department, and so on). The study period is 5 years, and the MARR is 20%. Based on this information, determine the preferred alternative design using the IRR method.

	A	B	C	D
Investment	P100,000	P140600	P148,200	P122,000
Annual cost	29,000	16,900	14,800	22,100
Useful Life (yr.)	5	5	5	5
Salvage Value	10,000	14,000	25,600	14,000