(3)1096 x (2) 4 (2) + (3) (5) Total End-of- Year Payment Amount owed Interest owed Total Money Principal at the beginning of Year Year for the Year owed at the Payment end of Year Plan 1: At end of each year pay Php 2,000 Principal plus Interest due 8,000 6,000 4,000 2,000 800 600 400 8,800 6,600 4,400 2,000 2,400 2,000 8,000 10,000 Plan 2: Pay Interest due at end of each year and Principal at end of 4 years 8,800 8,800 8,800 8,800 800 800 800 800 8,000 8,000 8,000 8,000 800 0 3,200 8,000 11,200 Plan 3: Pay in 4 equal End-of-Year Payments 8,000 6,276 4,380 2,294 800 628 438 8,800 6,904 4,818 2,524 1,724 1,896 2,086 2.2942.524 8,000 2,524 2,524 2,524 2,096 10,096 Plan 4: Pay Principal and Interest in one payment at end of 4 years 8,000 8,800 9,680 10,648 800 880 968 1,065 3,713 8,800 9,680 10,648 11,713 2 11,713 11,713 8,000 Alternatives/Options that are evaluated must be substantially equivalent. Meaning when these are compared would produce same results, serve same purpose, or accomplish the same function, but not always possible to achieve some types of economic studies. If you were tasked to make a recommendation based on the above table, which one would you propose to management. Please consider (1) interest rate (2) the amounts of money involved (3) the timing of the monetary receipts and/or disbursements, and (4) the manner in which the interest, or profit, on invested capital is repaid and the initial capital recovered. GOOD LUCK