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Kapatid Corporation is considering an investment in new equipment costing Php 77,500. The equipment will be depreciated on a straight-line basis over a five-year life
Kapatid Corporation is considering an investment in new equipment costing Php 77,500. The
equipment will be depreciated on a straight-line basis over a five-year life and is expected to
generate net cash inflows of Php 22,500 the first year; Php 32,500 the second year; and Php
45,000 every year thereafter until the fifth year. What is the payback period ?
Select one:
a. 1.72 year
b. 1.25 year
c. 0.86 year
d. 1.02 year
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