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Can you help me solve this problem. Make sure you follow the instructions. Test II: Problem Solving: Instructions: Read the problems carefully and answer the

Can you help me solve this problem. Make sure you follow the instructions.

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Test II: Problem Solving: Instructions: Read the problems carefully and answer the questions correctly. Support your answer with computations. 1. Maria sells apple for P10.00 and her Qd = 1,000. When she decides to sell it at P15.00, her Qd2 becomes 500. Should Maria sell her apple at P10.00 or P15.00? Is Qd elastic or inelastic? 2. If Zoila sells orange for P25.00 per piece, the demand for it is 200. When she raises it by P40.00, the quantity demanded drops to 150. At what price will Zoila maximize her profit? Is the demand elastic or inelastic? 3. A company has fixed cost of P200,000 in order to sell a product that cost them P500 per unit. If a company sells the product for P1,200 per unit compute for the following: a. break-even units b. the units required to produce P1,000,000 in profit. 4. Calculate the net present value of a project which requires an initial investment of P243,000 and it is expected to generate a net cash flow of P50,000 each month for 12 months. Assume that the salvage value of the project is zero. The target rate of return is 12% per annum. 5. An initial investment of P8,320 thousand on plant and machinery is expected to generate net cash flows of P3,41 1 thousand, P4,070 thousand, P5,824 thousand and P2,065 thousand at the end of first, second, third and fourth year respectively. At the end of the fourth year, the machinery will be sold for P900 thousand. Calculate the net present value of the investment if the discount rate is 18%. Round your answer to the nearest thousand

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