Question: Answer the ff PROBLEM 2_Fantastic Company is considering buying a new machine, requiring an immediate P400,000 cash outlay. The new machine is expected to generate

Answer the ff

PROBLEM 2_Fantastic Company is considering buying a new machine, requiring an immediate P400,000 cash outlay. The new machine is expected to generate annual cash inflows net of tax of P160,000 in each of the next five years of its economic life. No salvage value is expected at the end of 5 years. The company management desired a minimum return of 14% on rested capital. REQUIRED: (9) Payback period (10). Accounting rate of return (11). Net present value 12). Profitability index

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1. Background knowledge of the subject and

4. What specific changes in the environment have taken place in relation to the information we have collected?

2. The purpose of the acquisition of the information.