Compute the future value of the annuity payments

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Problem 1: Find the PV of the following: end of Year 1: P300,000 Year 2: 400,000 at the discount rate of 10%.

Problem 2: Find the present value of P500,000 at the end of year 2 with discount rate of 8%.

Problem 3: Find the PV of the following: end of Year 1: 300,000 end of Year 2, Year 3, Year 4, Year 5 of P600,000 each year; discount rate is 8%.

Problem 4: (a) Find the total PV of the following projected cash flows: Years 1-5 is P2,200,000 each year; and Year6 is P3,000,000 and Year 7 is P3,500,000 (discount rate is 10%). (b) Find the net present value assuming the initial outlay (investment) was P800,000.00; (c) will recommend the project?

Problem 5: You invest P12,000 every year (every end of each year) for the next 20 years, at 12% interest. Compute the future value of this annuity payments. (hint: ordinary annuity)

Reference no: EM132993598

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