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An existing compressor will supply only70% of the estimated future compressed air requirements...

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Accounting

An existing compressor will supply only70% of the estimated future compressed air requirements of a manufacturing plant. It costs Php 25,213 a year to operate and maintain and it can be sold now for Php 13,544. A new compressor which will just furnish the required 30% additional air can be purchased for Php 27,713, Its annual operating disbursements are Php 13,432.A full-capacity machine which can supply the entire air requirements is available for Php 60,715, and its annual operational costs are expected to be Php 31,298. Each machine is expected to last 10 years with 10% of the present values as salvage value. The minimum required rate of return is 18%.Using annual cost method, what is the total annual cost of the full-capacity compressor? (Answer is in Php.)ASAP

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