Question
The cash disbursements for the construction of the new office of ABC Inc are listed as follow: Payment 1. payment of p25,800 at the end
The cash disbursements for the construction of the new office of ABC Inc are listed as follow:
Payment 1. payment of p25,800 at the end of the 2nd and 4th year and p14,965 at the end of 6th year
Payment 2. Monthly payment of P3,880 at beginning of each month for 5 years
Payment 3. Perpetuity of P2660 every quarter starting 3 years from now.
If money is worth 9.12% compounded semi quarterly, determine the following
a.)Present worth of all the payments.
b.)Equivalent semi-annual (end of period) payments of all payments for 5 years.
c.)Equivalent single payment at the end of 10 years.
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