1. Alvin Patrimonia, a popular figure and superstar in the Philippine basketball, owns Patrimonio Multimedia, whose diversified interest includes trading and manufacturing. Alvin Invests in a labor intensive machine. The following information relates to the investment: Machine Acquisition Cost Php 12,000,000.00 Economic Life 10 years Salvage Value Php 100,000.00 Revenues/Earnings and Cost per Year: Income Php 6,000,000.00 Expenses 2,500,000.00 Net Income before Tax & Dep (a) 2 pts Less: Depreciation (Stand. Straight Line-do not include salvage value) (b) 2 pts Net Income before Tax (c) 2 pts Less: Income tax (31% of income) _(d) 2 pts Average Net Annual Earnings Php (e) 2 pts Cash Inflows per year = Average net Annual Earnings + Depreciation of 2 pts Payback period (in years) (g) 4 pts Average Rate of Return on investment in %= (h) 4 pts Net Present Value = (0) - 15 pts (1) Prepare the schedule of PV of Cash Inflows/Outflows and Future Values (2) Use the result in the average rate of return as your desired rate of return and assist the owner in his decision either to pursue or reject the project