A commercial bldg. can be acquired by a downpayment of P500,000 and a yearly payment of P100,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 12% compounded annually, what is the cash price of the commercial bldg.?

Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year    revenue/ product s     revenue/ product v0              (150,000) outlay              (150000) outlay1                     14000                                  150002                      24000                                  253333                      44000                                  520004                       84000                               63333                                                                                                            Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%

Q1. A machine costs the company K98,000 and its effective life is estimated to be 12 years. If the scrap realizes K3,000 only, what amount should be retained out of profits at the end of each year to accumulate at compound interest at 5% per annum? Q2. A mortgage of K200,000 is to be repaid over a 25 year period at a fixed interest rate of 4.5 %. Calculate the monthly repayments.

A car is to be purchased in monthly payments of P19,500 for 5 years starting at the end of 3 months. How much is the cash value of the car if the interest rate used is 10% converted monthly?