How much must he invest on March

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Question - a. Mr. Richard Lim wish to have P560,000 by March 8, 2028. Current gross investment rate is at 8.75% p,a., subject to 20% final withholding tax. How much must he invest on March 8, 2021?

b. Mrs Lisa Aquino wants an annual cash return of P60,000 for the next seven years after the investment. The rate of this type of investment is currently pegged at 5% p.a., net of 20% final withholding tax. How much should Mrs. Aquino invest today?

c. A project proposal required P800,000 initial investment, will result to the following cash returns:

Year 1 - P65,000; Yr 2 - P100,400; Yr 3- P250,650;

Year 4- P300,750; Yr 5 - P245,000; Yr 6 - P85,000

What will be the project's payback period and payback reciprocal?

Reference no: EM132867590

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