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An investment of P270,000 can be made in a project that will produce a uniform annual revenue of P185,400 for 5 years and then have

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An investment of P270,000 can be made in a project that will produce a uniform annual revenue of P185,400 for 5 years and then have a salvage value of 10% of the investment. Out of pocket costs for operation and maintenance will be P81,000 per year. Taxes and insurance will be 4% of the first cost per year. The company expects capital to earn not less than 25% before income taxes. Is this a desirable investment? What is the payback period of the investment

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