A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and a life of 12 years.  During its life an estimated maintenance cost of P 280, 000 will be spent each year.  Taxes and insurance will be 5 % of the first cost. The project will yield a uniform annual revenue of P 1M.  The company expects to earn 20% before income taxes.  Compute the payout period.

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Solution Given Here Initial Investment is P2500000 Salvage Value is 0 Life is 12 years Annual Mainte... View the full answer