A high-power engine equipment costs Php250,000. It has a lifespan of five years and has no salvage value. Calculate the payback period for a project whose cash flow each year equals 25 percent of the equipment's cost.

Group of answer choices

4.0 years

2.5 years

3.0 years

2.0 years

A telecom company's equity is worth PHP160 million and its debt is worth PHP90 million. Calculate the company's cost of capital if the required rate of return on equity is 15 percent and the required rate of return on debt is 5 percent. (assume no taxes)

Choices:

15 percent

11 percent

14 percent

12 percent

A telecoms' equity is worth P60 million, and its debt is worth P40 million. calculate the company's cost of capital when it has a required rate of return equity of 15 percent, and a required return on debt of 5 percent (ignore taxes)

Choices: 9 percent, 15 percent ,11 percent ,10 percent