PROBLEM # 1 A CPA Co. is an entity explicitly made for a joint venture agreement to extract gold and has corporate life in 3 years. The Net Cash Flow expected during the years it still operates is at P 2,000,000 per year. At the end of its life, CPA Co. estimates to incur P 10,000,000 as costs for closure and rehabilitation for its mining site and other costs related to the liquidation process. The cost of capital is set at 10%. The remaining assets by end of the corporate life will be bought by another company for P20, 000,000 and the remaining debt of P 4,000,000 will be fully paid off by then. Required: 1. Compute the Present Value of Cash inflows during years in Operation 2. Compute the Liquidation Value 3. Compute the value of CPA Company