PROBLEM 6 MC Inc charges an initial franchise fee of P1,940,000, with P500,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments discounted at 10% is P1,91.740. The franchisee has the option to purchase a P240,000 equipment for P190,000. MC Inc has substantially provided all initial services required and collectability of the payments is reasonably assured. What is the amount of revenue from franchise fees? RUBRICS 5 POINTS EACH - CORRECT ANSWERS WITH SOLUTION