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? OPTIONS A. 4.0 years B. 4.5 years C. 5.0 years D. 5.5 years

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