XYZ Corp. purchased a new machine with an estimated useful life of 5 years with no salvage value of P 45,000.

The machine is expected to produce cash flow from operations, net of income taxes, as follows:

1st year P 9,000 4th year P 9,000

2nd year 12,000 5th year 8,000

3rd year 15,000

XYZ will use the sum-of-the-years digit method of depreciate the new machine in its accounting records as follows:

1st year P15,000 4th year P 6,000

2nd year 12,000 5th year 3,000

3rd year 9,000

What is the payback period?