What is the payback period for the project

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Question - Consider a project that requires cash outflow of P50,000 with a life of eight years and a salvage value of P5,000. Annual before-tax cash inflow amounts to P10,000. Salvage value is ignored in computing depreciation. Assuming a tax rate of 30% and a required rate of return of 8%, what is the payback period for the project?

Reference no: EM133150046

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