1. The National Government intends to build a dam and hydroelectric project at a total cost of 2455,500,000. The project will be financed by foreign loan with 5% rate of interest per year. The annual cost for operation, maintenance, distribution facilities, and others would total 15,100,000. Annual revenues and benefits are estimated to be $56,500,000. If the structure is expected to last for 50 years with no salvage value, determine the cash flow and the benefit-cost ratio of the project. Is it a good project to deal with? 2. An existing building must be enlarged or replaced to accommodate new production machinery. The structure was built at a cost of $2,600,000. Its present book value, has been appraised at $800,000. If the structure is altered, the cost will be $1,600,000 and its service life will be extended 8 years with a salvage value of $600,000. A new building could be constructed for P5,000,000. It would have a life of 20 years and a salvage value of 700,000. Annual maintenance of the new building would be P160,000 compared with P100,000 in the enlarged structure. However, the improved layout in the new building would reduce annual production cost by P240,000. All other expenses for the new structure are estimated as being equal. Using an investment rate of 8%, determine which is more attractive for this firm. 3. The purchase price of a property, land and improvement, was 16,250,000. You put 20% down payment and the rest was financed. The mortgage is a 30-year loan at 6.5% principal-interest payment. Taxes and insurance at the time of purchase are P180,000 each year. The vacancy rate is 8% while the repair expenses averaged is $85,000 every year. You spend annually about P20,000 for miscellaneous and advertising costs. You manage the property yourself. Determine the monthly cash flow from 30-unit apartment with monthly rent of P6500 per unit. Was it a good investment