Two different types of hydraulic equipment are being considered for a certain power plant. Machine A has a rst cost of P12000 and a salvage value of P1500, life is 6 years and has an annual maintenance and operating cost of P900. Machine B has a rst cost of P13,600 life of 8 years with no salvage value. Annual operating cost is P700. Compute for the rate of return and suggest which machine should be purchased if money is worth 7%