A capital investment of Php 508,000 on a project can produce an annual revenue of Php 383,000 for 5 years. Thereafter will have a salvage value of 7% of the investment. The costs for operation and maintenance will be Php 150,000 per year; taxes and insurance will be 10% of the first cost per year. The company expects the project to earn not less than 25% before income taxes. What is your payback period of the investment? PLEASE ANSWER IN FOMULA NOT IN TABLE FORM

A capital investment of Php 508,000 on a project can produce an annual revenue of Php 383,000 for 5 years. Thereafter will have a salvage value of 7% of the investment. The costs for operation and maintenance will be Php 150,000 per year; taxes and insurance will be 10% of the first cost per year. The company expects the project to earn not less than 25% before income taxes. What is your payback period of the investment? PLEASE ANSWER IN FOMULA NOT IN TABLE FORM

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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