A company requires all its capital investment projects to have a payback period of 5 years or shorter

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A company requires all its capital investment projects to have a payback period of 5 years or shorter. This company is currently considering an equipment purchase that has an initial cost of Php 900,000. The equipment is expected to have a ten-year life. Assuming cash flows are equal, how much annual cash inflows are necessary in order to meet the payback period of the equipment?

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choice = 2 points

solution = 3 points

Select one:

a. 90,000

b. 190,000

c. 180,000

d. 170,000