A building contractor can purchase a transit mixer truck for P120000. Its estimated life is 6 years. Annual maintenance cost is P3500 and its daily operating expense is P200, salary of the driver is P400 a day. Taxes and insurance is 2% of the cost of the truck. Z Company, a firm dealing with heavy equipment has a similar truck for hire at P1800 a day which includes the service of the driver. If money is worth 6%, if the transit mixer is needed by the contractor for an average of 180 days per year, determine the payback period if the contractor decided to purchase his own transit mixer.

Select the correct response:

0.6221

0.5221

0.6331

0.5331