Machine A has been used for 10 years and currently has a book value of Php 2,000. A decision must be made concerning the most economic action to take : Keep A, replace A w/ B , or replace A w/ C. Machine A, if continued in service, can be used for 6 more years and scrapped at zero salvage value. Annual operating costs are at Php 10,000 ( depreciation cost included, straight line depreciation ). If Machine A is replaced with Machine B, A can be sold for Php 2,500. B will cost Php 12,000, will have a 6 year life and a salvage value of Php 3,000 at the end of that time. Annual operating costs are estimated at Php 8,000 ( depreciation cost included, straight line depreciation ). On the other hand, if A is replaced with Machine C, C will cost Php 17,500, will have a 6 year life and a salvage value of Php 1,750. Annual operating costs are estimated at Php 6,000 ( depreciation cost included, straight line depreciation ). If the MARR before tax is 15%, income tax = 40% and capital gains tax = 25%, what course of action should be taken?