For Nos. 48-50. A special purpose machine is to be acquired by paying a P15,000 initial cash payment plus a debt assumption of P135,000. The machine will generate additional net annual cash inflow of P40,000 for the firm throughout the 10 years of useful life of the asset. At the end of its life, a salvage value of 10% of its initial cost will be realized. Assuming that the MARR is 20% per annum, 48. Is the project justified using the IRR method? A. IRR = 0.1572; Since IRR MARR, project is justified. D. IRR = 0.2762; Since IRR > MARR, project is justified. 49. Is the project justified using the ERRR method? A. ERRR = 0.2653; Since ERRR > MARR, project is justified. B. ERRR = 0.2320; Since ERRR > MARR, project is justified. C. ERRR = 0.1987: Since ERRR MARR, project is justified. D. ERR = 0.2278; Since ERR > MARR, project is justified. For Nos. 48-50. A special purpose machine is to be acquired by paying a P15,000 initial cash payment plus a debt assumption of P135,000. The machine will generate additional net annual cash inflow of P40,000 for the firm throughout the 10 years of useful life of the asset. At the end of its life, a salvage value of 10% of its initial cost will be realized. Assuming that the MARR is 20% per annum, 48. Is the project justified using the IRR method? A. IRR = 0.1572; Since IRR MARR, project is justified. D. IRR = 0.2762; Since IRR > MARR, project is justified. 49. Is the project justified using the ERRR method? A. ERRR = 0.2653; Since ERRR > MARR, project is justified. B. ERRR = 0.2320; Since ERRR > MARR, project is justified. C. ERRR = 0.1987: Since ERRR MARR, project is justified. D. ERR = 0.2278; Since ERR > MARR, project is justified