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Chipipay Company is considering an investment which will require P200,000. The estimated cash inflows from the investment are as follows: End of year 1 P100,000

Chipipay Company is considering an investment which will require P200,000. The estimated cash inflows from the investment are as follows: End of year 1 P100,000 2 80,000 3 60,000 4 50,000 5 40,000 Required: Ignoring income taxes. Compute the following: a. Payback b. ROI c. Accounting rate of return on the original cost and the average cost of investment

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