1. ABC Company is investing in a project that costs PHP 100,000 and will provide cash flows of PHP 50,000, PHP 20,000 and PHP 60,000 over the next three (3) years. Assume that there is no salvage value at the end of the project and that the required rate of return is 10%. * Compute for the Net Present Value (NPV). (2 points) 2. Investor A buys a stock for PHP 1,000 a share, owns the stock for five years, and earns a total amount of PHP 100 in dividends. Then, Investor A sells the stocks for PHP 1,200. * Compute for the Rate of Return (ROR) (2 points) * Compute for the Cash Return (2 points) 3. Investor B pays PHP 2,000 par value 10% coupon bond. The investment earns PHP 200 in interest income per year. Investor B sells the bond for PHP 2,500 in premium value and earns PHP 400 in total interest. * Compute for the Rate of Return (ROR) (2 points) * Compute for the Cash Return (2 points) 4. Company C invests 30% of its portfolio in SMART and 70% in Globe. The expected peso return in SMART investment is 10% and in Globe 12%. * Compute for the Percentage Expected Return (2 points)