Hello i have 4 questions please answer it with complete a nd clear solution. Thankyou!!!

1) A newly-built business property, containing space for a store and two offices, can be purchased for P1, 200, 000. A prospective buyer estimates that during the next 10 years he can obtain the annual out-of-pocket disbursements will not exceed P60, 000. He believes that he should be able to dispose of the property at the end of 10 years at not less than P700, 000. Annual taxes and insurance will total 2.5% of the first cost.

(a)Assume he has sufficient equity capital to purchase the property, and that the average return he is obtaining from his capital is 20%. Would you recommend the investment?

(b)What recommendation would you make if he had to borrow 25% of the required capital, on the basis of a 10-year amortization with interest of 18%?

2) A factory engaged in the fabrication of an automobile part with a production capacity of 700,000 units per year is only operating at 62% of capacity due to unavailability of the necessary foreign currency to finance the importation of their raw materials. The annual income is P430,000.00. Annual fixed costs are P190,000.00 and the variable costs are P0.348 per unit. What is the current profit or loss?

3. A company requires 375,000 kw-hr for electrical power per year which it pays for at the rate of PO.16 per kw-hr. It is proposed to build a power plant which will supply the above requirements for electrical power and studies reveal the following: First Cost of the Power Plant P250,000 Annual Operation & Maint. P20,000 Salvage Value at the End of Life P30,000 Life of Power Plant 15 years Taxes & Insurance 2% Present of Return 10% Would you recommend building the power plant?4. An existing factory must be enlarge or replaces to accommodate new production machinery. The structure was built at a cost of P1,300,000. Its present book value, based on straight line depreciation is P350,000 but it has been appraised at P400,000. If the structure is altered, the cost will be P800,000 and its service life will be extended 8 years with a salvage value of P180,000. A new factory could be built for P1,800,000. It would have a life of 20 years and a salvage value of P200,000. Annual maintenance cost of the new building would be P36,000 compared with P24,000 in the enlarge structure. However, the improved layout in the new building would reduce annual production cost be P40,000. All other expenses for the two structures are estimated as being equal. Using an investment rate of 24%. Determine which is the more attractive investment for this firm by annual cost pattern