On January 1, 2019, Timothy Company signed an agreement to operate as a franchisee of Titus Company for an initial franchise fee of P60,000,000.Of this amount, P20,000,000 was paid when the agreement was signed and the balance is payable in equal annual payment of P10,000,000 beginning December 31, 2019.The agreement provides that the down payment is not refundable and no future services are required of the franchisor.Timothy's credit rating indicates that it can borrow money at 12% for a loan of this type.

ANSWER: 52,800,000