1. Triple Q Company is in need of funds to acquire a 5-hectare lot that it is considering for its manufacturing plant. The owner who happened to be your long-time friend approached you to determine which type of financing short-term financing or long-term financing, the company should resort to. What would you advise your friend and why?

In answering, please discuss as follows:

1. When to use short-term and long-term financing
2. Give at least two examples for short-term financing and two examples for long-term financing, describing the examples that you gave
3. Your advise to your friend

2. Your friend was just appointed as the Chief Financial Officer of a company. According to what you have learned in Financial Management, there are certain decisions that a Chief Financial Officer should focus on. Discuss with your friend at least two of the said decisions.

In answering, please discuss as follows:

1. What type of decision
2. Explain the decision
3. Give at least two examples for the decision

3. Masipag company and Masinop, Inc. had the following accounts for the immediately preceding year.

	Masipag Company	Masinop, Inc.
Current Assets
Cash	P 25,000,000	P 2,000,000
Accounts Receivable	60,000,000	8,000,000
Inventory	85,000,000	160,000,000
Prepaid Expenses	5,000,000	5,000,000
Total Current Assets	P 175,000,000	P 175,000,000
Total Current Liabilities	P 87,500,000	P 87,500,000

Required:

1. Calculate the current ratio of both companies.
2. Compare and analyze the current ratios of the two companies based on your computations in letter above.

4. Mabait Company is planning to acquire an equipment that will cost approximatey P316,900. The use of the equipment will produce annual inflows of P100,000 for four years, after which, it will have no more salvage value. The company owners have specified a required rate of return at least 10% on such investments.

Required:

1. Calculate the investments net present value.
2. Based on your calculation in letter a above, should Mabait Company push through with the acquisition of the equipment? Why?