Margaret Company has an initial cost of investment amounting to P225,000 and expects the following cash inflows:   Year-    NET OPERATING CI                         SALVAGE VALUE 1                             P60,000                             P150,000 2                             45,000                                  105,000 3                             37,500                                  90,000 4                             30,000                                  75,000 5                             30,000                                  45,000 6                             30,000                                  15,000 what is the payback bailout period

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 2PA: Jasmine Manufacturing is considering a project that will require an initial investment of $52,000...
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Margaret Company has an initial cost of investment amounting to P225,000 and expects the following cash inflows:

 

Year-    NET OPERATING CI                         SALVAGE VALUE

1                             P60,000                             P150,000

2                             45,000                                  105,000

3                             37,500                                  90,000

4                             30,000                                  75,000

5                             30,000                                  45,000

6                             30,000                                  15,000

what is the payback bailout period

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