A ChE company plans to acquire a new equipment at a cost of P150,000 to increase their efficiency. The MARR = 10%. Based

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A ChE company plans to acquire a new equipment at a cost of
P150,000 to increase their efficiency. The MARR =
10%. Based on analysis, AOC will amount to P31,000 while their
annual revenue will amount to P50,000. The salvage
value will be P3,000 at the end of 15 years of economic life, and
will be depreciated by P200 as the years increase
from 15-year period
7. Which of these conditions will indicate a decision reversal? (2
pts.)
A. Increase the MARR by 5.2172%.
B. Decrease the MARR to 9.4434%.
C. Increase the economic life by one more year.
D. Simultaneously increase the MARR by 1% while decreasing the
economic life by 1 year.
8. On the perspective of the ChE company at the present time, is it
economical to invest on the said equipment?
(1 pt.)
A. No. B. Yes. C. Maybe. D. Depends on the current situation.
9. What can be concluded with the sensitivity analysis if the MARR
ranges from 9% to 11% and economic life
ranges from 12 to 15 years? (2 pts.)