Evaluation of employee group housing offer A Pharma company has recently recruited 4 scientists at an average age of 27 and is looking to develop quite a few pharmacological formulations With a view to retain them the company proposes to offer a housing scheme to them on the following terms and conditions The number of beneficiaries will be four in number The total cost of purchasing apartments will be RS . I crore 3 . PNBHEL offers an 18 year term @ 900% interest and HDFC offers 15 years term @ 8% interes 4 . The company will pay the housing finance company on an FAV basis 5 . A Down payment of 5% of the cost of the apartment has to be made and recoverable from the employee in 24 installments . The upfront payment will be made by the company 6 . In case of availing the loan from HDFC , 50% of the FAV will be recovered from the employee on a monthly basis and in case of availing the loan from PNBHEL 45% will be recovered from the employee . The option of choosing the service rests with the company only Assume a 6% accrual on the deductions taken from the employee under either option with quarterly compounding 8 . Assume that employee deductions happen on the first day of the month and housing loan payments made by the company happens on the last day of the year 9 . The housing loan is offered on a fixed interest basis and LAV will not change 10 . Assume the individual apartments are of equal value PVIEA 18 . 9 876 PVIFA 15 . 8 = 3.56 You are called upon to do the following