A MACHINE IS UNDER CONSIDERATION FOR INVESTMENT. THE COST OF THE MACHINE IS P 25, XXXXXXXXXXEACH YEAR IT OPERATES, THE MACHINE WILL GENERATE A SAVINGS OF P 15, XXXXXXXXXXGIVEN AN EFFECTIVE ANNUAL...

A MACHINE IS UNDER CONSIDERATION FOR INVESTMENT. THE COST OF THE MACHINE IS P 25,000.00. EACH
YEAR IT OPERATES, THE MACHINE WILL GENERATE A SAVINGS OF P 15,000.00. GIVEN AN EFFECTIVE ANNUAL
INTEREST OF 18%, WHAT IS THE DISCOUNTED PAYBACK PERIOD, IN YEARS, ON THE INVESTMENT IN THE
MACHINE?