An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period in years based on the following estimates. Annual depreciation = P1.0 M Operational expenses = P0.6 M Taxes and insurance = P0.2 M Miscellaneous expenses = P50,000 Select one: a. 8.90 years b. 7.12 years c. 4.36 years d. 5.78 years
An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period in years based on the following estimates. Annual depreciation = P1.0 M Operational expenses = P0.6 M Taxes and insurance = P0.2 M Miscellaneous expenses = P50,000 Select one: a. 8.90 years b. 7.12 years c. 4.36 years d. 5.78 years
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 3BE
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An investment of P8.5 M is expected to yield an annual income of P2.8 M. Determine the payout period in years based on the following estimates.
Annual depreciation = P1.0 M
Operational expenses = P0.6 M
Taxes and insurance = P0.2 M
Miscellaneous expenses = P50,000
Select one:
a. 8.90 years
b. 7.12 years
c. 4.36 years
d. 5.78 years
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