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Mr. Tino is thinking of buying a machine worthP300,000 with a scrap value of P40,000 after 5 years. It is expected to generate a net

Mr. Tino is thinking of buying a machine worthP300,000 with a scrap value of P40,000 after 5 years. It is expected to generate a net income before taxes of P80,000 a year with an income tax rate of 30%. The cost of capital is 10%.

A.1 What is the annual cash return?

A.2 What is the payback period?

A.3 What is the net present value?

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