. The CIT School of Engineering needs P20,000,000.00 to pay for the building renovation in 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. For tax purposes, no further payments will be made after four years. What are the necessary payments if money is worth 18% per annum? a. 1.834 M b. 2.754 M c. 3.162 M d. 4.186 M

Y-u-r-i- -T-r-i-n-i-d-a-d- -h-a-s- -a- -m-o-n-t-h-l-y- -t-a-k-e---h-o-m-e- -p-ay- -o-f- -  ₱84,250.00;   -s-h-e- -m-a-k-e-s- -p-a-y-m-e-n-t-s- -o-f-  ₱20,500.00  -a- -m-o-n-t-h- -o-n- -h-e-r- -o-u-t-s-t-a-n-d-i-n-g- -c-o-n-s-u-m-e-r- -c-r-e-d-i-t- -(-e-x-c-l-u-d-i-n-g- -t-h-e- -m-o-r-t-g-a-g-e- -o-n- -h-e-r- -h-o-m-e-)-.- -H-o-w- -w-o-u-l-d- -y-o-u- -c-h-a-r-a-c-t-e-r-i-z-e- -Y-u-r-i-’-s- -d-e-b-t- -b-u-r-d-e-n-?- -W-h-a-t- -i-f- -h-i-s- -t-a-k-e---h-o-m-e- -p-a-y- -w-e-r-e-  ₱42,500.00 -a- -m-o-n-t-h- -a-n-d- -h-e- -h-a-d- -m-o-n-t-h-l-y- -c-r-e-d-i-t- -p-a-y-m-e-n-t-s- -o-f-  ₱25,500.00?

2. Mnvircaneand Partners produces its own electric power. The plant's power capacity exceeds its own requirements. Mr. ny. Drand Partners has been offered a contract to sell excess power to a nearby utility company. Mr. r. Dor and Partners would supply the utility company with 20 000 megawatt-hours per year (MWh/a) for 10 years. The contract would specify a price of $22.75 per megawatt-hour for the first year of supply, which would rise by 1% per year after this. This price is independent of the rate of inflation over the 10 years. Mrul ice and Partners would incur a first cost to connect its plant to the utility system. There would also be operating costs attributable to the contract. Mr. and Partners believes the price of yearly operating costs would increase over time at the inflation rate. The terms of the contract and Mr. osrly and Partners' costs are shown in the tables below. Output price in year 1 (S/MWh) Price adjustment (yearly) Power to be supplied (MWh/a) Contract length…

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