The Bokawkan company is considering to purchase a new machine. Annual cash returns on investment cost of P1,200,000 is expected to be at P220,000. Useful is estimated at 8 years. The company's cost of capital is 14% and income tax rate is 35%. What is the payback reciprocal of the investment? a. 20.5% b. 18.3% c. 11.9% d. 22.2%

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Chapter11: Capital Budgeting Decisions
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The Bokawkan company is considering to purchase a new machine. Annual cash returns on investment cost of P1,200,000 is expected to be at P220,000. Useful is estimated at 8 years. The company's cost of capital is 14% and income tax rate is 35%. What is the payback reciprocal of the investment?

a. 20.5%
b. 18.3%
c. 11.9%
d. 22.2%
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