PROBLEM #7 DD Company purchased equipment by making a down payment of P320,000 and issuing a note payable for P1,500,000. A payment of P500,000 is to be made at the end of each year for three years. The applicable rate of interest is 8%. Irrecoverable taxes amount to P12,000, shipping charge of P160,000 and installation cost of P280,000 were incurred. a) What is the present value of all payments? D) How much is the discount on note payable? What is the capitalized cost of the equipment? d How much will be the interest expense for the current year, assuming that the equipment was purchased January 1