Question: handwritten please need po 30mins PROBLEM SOLVING 1. You are contemplating on building a housing project. The land costs P4,000,000 and the construction of a

handwritten please need po 30mins
PROBLEM SOLVING 1. You are contemplating on building a housing project. The land costs P4,000,000 and the construction of a townhouse will cost P12,000,000. You can sell the entire project in a year's time for P20,000,000. Assuming an opportunity cost of capital of 6%, will you invest in the project? Why? 2. Using again the data in number 1, but instead of selling the entire housing project in a year's time, you decided to lease the townhouse for 10 years at a total yearly sum of P1,000,000. at the end of 10th year, you will sell the townhouse units for a total sum of P25,000,000. Assume the same opportunity cost of capital of 6%. Which is better, outright sales as in number 1 or leasing it out and selling it in the 10th year? Why? 3. If you put P500,000 in the bank, it will give you a compound interest of 10%. How much money will you have at the end of the 2-year period? How much would the present value of the amount be? Compute for the Net Present Value. 4. You start a savings plan by depositing P 5,000 at the beginning of every year into an account that offers 10% per year. If you make the first deposit today, and then four additional ones, how much will have accumulated after 5 years? 5. What is the present value of an annuity of P50,000 per year, with the first cash flow received three years from today and the last one received 8 years from today? Use a discount rate of 8 percent
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