1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of each year. If there is an interest rate of 10% per year, determine the present worth and future worth of the annual payments. What is the value of the five (5) annual payments at the end of the third period? Include the cash flow diagram in your solution. 2. Two 100-horsepower motors are being considered for use in the following table: Brand X Brand Y Purchase Price Useful life in years Market Value Annual Maintenance P102,543.95 P334,617.10 10 10 None None Expense Efficiency P9,174.99 80% P16,730.85 90% a. If the power costs P5.40 per kWh, and the interest rate is 12% per year, how many hours of operation per year are required to justify the purchase of Brand Y? (1hp = 0.746 kW)