The following data pertain to a five-year project being considered by Alex Corporation: A new equipment costing P 1.8 million will be acquired on January 1, 2020. It will be depreciated using the straight-line method over a five-year period, with a salvage value of P 200,000 at the end of 5 years. The new equipment will replace an old one that has been fully depreciated to its salvage value of P 220,000. Another company has offered to buy this old equipment for P 250,000 on the replacement date. The project is expected to generate incremental sales of 50,000 units per year. The contribution margin per unit is P 10. Incremental project fixed costs, excluding depreciation, is P 130,000 Alex Corporation is subject to an income tax rate of 30%. Its cost of capital (hurdle rate) is 10%. Required: Compute the following: a. Net cost of investment in the new equipment. b. Annual net cash inflows net of income taxes of the new equipment. C. Net present value of the new equipment d. Profitability index of the new equipment e. Internal rate of return of the new equipment