Problem 1 An investment of P 800,000 can bring in the following annual cash inflows and salvage values: The company uses the straight line method for depreciation and tax rate is 40% Year 1 2 3 456 Net Cash Inflows Salvage Values (end of each year) P 258,000 368,000 244,000 160,000 236,000 64,000 156,000 32,000 120,000 16,000 8,000 112,000 Required: Determine the following. Round present value factors to 4 decimal places. And round peso values to whole numbers. 1. Payback period 2. payback bailout period. 3. Accounting rate of return 4. Net present value assuming the discount rate is 12% 5. Internal rate of return 6. Profitability index