The average annual cost of damages caused by floods at Dona Rosario Village located along Butuanon river is estimated at P700,000. To build a gravity dam to protect the area from the floods, would cost P2,500,000 and would involve an annual maintenance cost of P20,000. With interest at 8% compounded annually, how many years will it take for the dam to pay for itself? Please be clear with the formulas and computations. OPTIONS A. 4.0 years B. 4.5 years C. 5.0 years D. 5.5 years

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