What is the average rate of return for this investment? The management of NUBD Co. is considering the purchase of a new machien costing P400,000 with a salvage value of P50,000. The company's desired rate of return is 10%. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year Income from operations Net cash flow P180,000 1 2 120,000 3 4 5 P100,000 40,000 20,000 10,000 10,000 100,000 90,000 90,000