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

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.