family Farm, a mango farm, is considering purchasing a tractor for P475,000. The machine has a 10-year life and an estimated salvage value of P27,500. Delivery costs and set- up charges will be P12,100 and P400, respectively. The farm uses straight-line depreciation, it also estimates that the tractor will be used five times a week with the average charge to the individual farmers of P400. Gasoline is P25 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.418 Required: For the new tractor, compute the cash payback period.? (answer is number of years, digit only)

Answer rating: 100% (QA)

Cash Payback Period for New Tractor Heres how to calculate the cash payback period for the new tract... View the full answer