The firm’s is considering an investment in some additional equipment. The equipment has a net cost of investment amounting to ₱600,000 and has an estimated useful life of 5 years with no salvage...

The firm’s is considering an investment in some additional equipment. The equipment has a net cost of investment amounting to ₱600,000 and has an estimated useful life of 5 years with no salvage value. The firm expects an annual cash inflow of ₱128,000 from this equipment. The firm’s internal rate of return is 14%. What is the payback period on this equipment?