1. Suppose that you can buy a phone for PHP8,000 down payment with 4,000 for each of the next two years or pay PHP15,500 cash today. Given an interest rate of 8%, which is a cheaper alternative? PHP 8,000 PHP 4,000/(1.081) PHP 4,000/(1.082) Present Value 8,000.00 3,703.70 3,429.36 Total PV PHP 15,133.06

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