The management of X Corporation is considering the purchase of a new machine costing P375,000. The company's desired rate of return is 6%. Use the following data in determining the acceptability of this investment:

Year Operating Income Net Cash Flow

1 P18,750 P 93,750

2 18,750 93,750

3 18,750 93,750

4 18,750 93,750

5 18,750 93,750

The present value index for this investment is

a. 1.00 b. 0.95 c. 1.25 d. 1.05

[USE DATA IN ABOVE] The net present value for this investment is

a. P(118,145) b. P118,145 c. P19,875 d. P(19,875)