Hambie Company, which a company created under a joint venture to extract copper. The mine is expected to be depleted within 3 years. Net cash flows expected during the three year period is estimated to be P6,000,000 per year. At the end of its life, Hambie expects to incur P 20 million for closure and rehabilitation cost for its mining site as mandated by the government. Cost of capital is assumed to be 10%. Remaining assets by the end of its corporate life will be bought by a sister company for P 60 million and applicable tax for the sale of the assets amount to P8 million. If the valuation happens now, compute for the value of Hambie.

Required:

1. Determine the liquidation value