2. Anticipated growth in trade has the company thinking about buying one more ship. A ship suitable for a new trip (not related to any previously discussed) costs 7.5 million Phils, and is anticipated to be needed in 6 years, with payment due on delivery at the end of the 6^th year.

a. As the prudent and sophisticated financial advisor to the company, what annual contribution to a savings fund would you recommend the company make to accumulate the necessary funds under the assumption that the company can earn a 15% return on investment?

b. What annual contribution would you, as the prudent financial advisor, recommend if the company can earn an 10% return on investment?