On January 1, 2018, Denver Corporation bought land for P 15,000,000 in which he paid P2,500,000 and signed a non-interest bearing note for the balance in five annual installments every end of year starting December 31, 2018. Required: Assuming the effective interest rate of 12.5%, present value of an ordinary annuity of 1 for five periods is 3.560568, determine the following: 1. Present value of the note on January 1, 2018 = 2. Discount on notes payable on January 1, 2018 =