4. If a certain machine undergoes a major overhaul now, its output can be increased by 20%, which translates into additional cash flow of P20,000 at the end of each year for 5 years. If i = 15% per year, how much can we afford now to invest to overhaul this machine? (5 pts) (Show the Cash flow diagram and your solutions).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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4. If a certain machine undergoes a major overhaul now, its output can be increased by 20%, which

translates into additional cash flow of P20,000 at the end of each year for 5 years. If i = 15% per year,

how much can we afford now to invest to overhaul this machine? (5 pts) (Show the Cash flow diagram

and your solutions).

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