ww 1. Two years ago the rental for the use of equipment and facilities was paid 5 years in advance with option to renew the rent for another 5 years by payment of P15,000 annually at the start of of each year for the renewal period. Now, the lessor asks the lessee, if it could be possible to prepay the rental that be paid annually in the renewed 5-year period. If the lessee will consider the request, what would be the fair prepayment to be made, to the lessor if interest is figured at 8% ? (30 pts) 2. A business need P50,000 for its operation. One financial institution is willing to lend money for one year at 12.5% interest per annum (discounted ) .Another lender is charging 14% with the principal and interest payable at the end of the year. A third financer will lend it the amount payable in 12 equal monthly installments of P4,600.00 each. Which offer is best for the business? (40 pts) 3. The capitalized cost of a certain piece of equipment was found to be P1.42M. The rate of interest is 12% with a salvage value of P100,000 at the end of its useful life of 10 years. Assuming that the cost of perpetual replacement remains constant, determine the original cost of the equipment. (30 pts)