Margaret Company has an initial cost of investment amounting to P225,000 and expects the following cash inflows:   Year-    NET OPERATING CI                         SALVAGE VALUE 1                             P60,000                             P150,000 2                             45,000                                  105,000 3                             37,500                                  90,000 4                             30,000                                  75,000 5                             30,000                                  45,000 6                             30,000                                  15,000 what is the payback bailout period

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Margaret Company has an initial cost of investment amounting to P225,000 and expects the following cash inflows:

 

Year-    NET OPERATING CI                         SALVAGE VALUE

1                             P60,000                             P150,000

2                             45,000                                  105,000

3                             37,500                                  90,000

4                             30,000                                  75,000

5                             30,000                                  45,000

6                             30,000                                  15,000

what is the payback bailout period

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