A special effects process can be carried out by using a machine which can be acquired for Php450,000. The sources for these funds are as follows:

Source	Amount	Cost
Short Term Stocks	Php 270,000	0.15
Common Stocks	Php 90,000	0.20
Marketable Securities	Php 90,000	0.05

Other data of the investment are as follows:

Life = 10 years

Value at end-of-life: Php 50,000

Annual Receipts = Php 150,000

Annual Disbursements = Php 60,000

Reinvestment Rate of Return = 13%

Is the investment justified? Use the following methods in testing its acceptability:

a. PW/NPV

b. AW

c. FW

d. IRR

e. ERR

f. ERRR

g. Simple payback when desired payback period is 4.5 years

h. Discounted payback