What is the computer payback period

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Inc. is planning to invest to buy a computer costing P50,000. It has an expected life of ten years. The computer is expected to generate net income of P10,000 per year before tax. The computer will be depreciated according to the straight-line method and the firm's tax rate is 30 percent. What is the computer's payback period?

Reference no: EM132909653

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