An old machine cost P48,000.00 a year to maintain. What expenditures for a new machine is justified if no maintenance will be acquired for the first 3 years, P12,000.00 per year for the next 7 years, and P48,000 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered.

An old machine cost P48,000.00 a year to maintain. What expenditures for a
new machine is justified if no maintenance will be acquired for the first 3 years,
P12,000.00 per year for the next 7 years, and P48,000 a year thereafter?
Assume money to cost 4% compounded annually and no other costs to be
considered.