1. A machine cost PHP 2,250,000.00 to purchase. Fuel and minor maintenance are estimated to cost PHP 617.00 per operating hour (those hours when the engine is operating and the machine is doing work). A set of tires cost PHP 160,000 to replace, and their estimated life is 2,800 use hours. A PHP 300,000.00 major repair will probably be required after 4,200 hr of use. The machine is expected to last for 8,400hr, after which it will be sold at a price (salvage value) equal to 10% of the original purchase price. A final set of new tires will not be purchased before the sale. How much should the owner of the machine charge per hour of use, if it is expected that the machine will operate 1,400hr per year? The company's cost of capital rate is 7%. 2. How much would be the expected profit from the equipment if the rate charge to the project is twice the minimum amount calculated in Prob. 1? 3. A vehicle cost PHP 1,800,000.00 to purchase. Maintenance is estimated to cost PHP 20,000.00 per 5000km. The vehicle is expected to operate a mileage of 15,000km per year. The cost of tires is estimated to be PHP 30,000 and are set to be replaced at its 4th year. Assume fuel to cost 90 pesos per liter and the company's cost of capital rate is 8.5%. How much should the owner of the vehicle charge per km of use? Assume the vehicle to have a mileage of 11km/L and has a salvage life of 5 years. 4. How is the charge per km of use if the fuel will not be charged to the owner