It is the start of the year and St. Tropez Co. plans to replace its old sing-along equipment. These information are available:   Old New Equipment cost P70,000 P120,000 Current salvage value 10,000 - Salvage value, end of useful life 2,000 16,000 Annual operating costs 56,000 38,000 Accumulated depreciation 55,300 - Estimated useful life 10 years 10 years The company’s income tax rate is 35% and its cost of capital is 12%.  What is the present value of all the relevant cash flows at time zero? Group of answer choices (P110,000) (P54,000) (P124,700) (P120,000)

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