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Two investment proposals are under review. The following figures are given: Project X Project Y Investment P92,000 P92,000 Year Cash Returns Salvage Value Cash Returns
Two investment proposals are under review. The following figures are given:
Project X Project Y
Investment P92,000 P92,000
Year Cash Returns Salvage Value Cash Returns Salvage Value
1 P20,000 P40,000 P8,000 P15,000
2 22,000 30,000 12,000 10,000
3 25,000 25,000 18,000 5,000
4 30,000 10,000 16,000 2,000
5 28,000 5,000 10,000 1,000
Estimate the payback bailout period for each proposal. Assume that salvage value remains constant during the particular year for which it is given.
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