A retrofitted space heating system is being considered for a small office building. The system can be purchased and installed for P110,000, and it will save an estimated 300,000 kilowatt-hours (kWh) of electric power each year over a six-year period. A kilowatt-hour of electricity costs P0.10, and the company uses a MARR of 15% per year in its economic evaluations of refurbished systems. The market value of the system will be P8,000 at the end of six years, and additional annual operating and ma