Three types of machine are being considered in your operations with the following cash flow pattern:

MACHINE A MACHINE B MACHINE C

Investment P1,000,000 600,000 300,000

Life 8 years 4 years 2 years

Salvage value 80,000 40,000 20,000

Annual costs 300,000 (1^st 4 years) 250,000 150,000

400,000 (last 4 years)

Annual revenues 600,000 (1^st 5 years) 500,000 400,000

500,000 (last 3 years)

Interest rate/year 15%

Will you invest in this machine? If so, which type? Use PW method.

Pls Show solution Thank you. No excel