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2. During the current year, Black Rose Inc. had an investment of P 200,000 that is expected to produce annual cash earning of P 65,000
2. During the current year, Black Rose Inc. had an investment of P 200,000 that is expected to produce annual cash earning of P 65,000 for 7 years. The salvage value for the first year is P 82,000 and is expected to decrease by P 10,000 annually. a) What is the payback period? b) What is the bail-out period? c) Considering your answers on the first two, which is better for measuring the returns of this investment
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