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What is the bailout period for the project

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Question - Bailout Period

A project costing P1,800,000 is expected to produce the following annual cash flows (after tax) and salvage value:

Year

Net cash inflow

Salvage value

1

500,000

800,000

2

500,000

600,000

3

600,000

500,000

4

800,000

400,000

5

700,000

300,000

Required - What is the bailout period for the project?

Reference no: EM132576274

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