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ACTIVITY 6 BUSINESS APPLICATIONS Solve and show your solution and explanations in a separate paper. 1. CM Company borrowed P 2 000 000 from a

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ACTIVITY 6 BUSINESS APPLICATIONS Solve and show your solution and explanations in a separate paper. 1. CM Company borrowed P 2 000 000 from a bank on June 30. 2015. The loan has an annual interest rate of 10% and the principal is payable at the end of every quarter amounting to P 25 000. The first quarterly payment will be on September 30, 2015 Prepare an amortization schedule for 2015 until the loan is fully paid on June 30. 2017. How much interest expense is incurred in 2015 and 2016 with respect to this loan? 2. A firm is evaluating two projects. The firm's cost of capital (appropriate discount rate) has been determined to be 9%. and the projects have the following initial investmentsand cash flows: Project Q Project Y Initial Investment: P 50 000 P 48 000 Cash Flows: P 20 000 P 30 000 25 000 35 000 w 15 000 40 000 20 000 10 000 Which project should the company pursue? Why

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