Exercise 1 Masipag has an investment opportunity costing P300,000 that is expected to yield the following cash flows over the next six years: Year One Year Two Year Three P115,000 P75,000 P90,000 Year Four Year Five Year Six P130,000 P100,000 P90,000 Required: a. Find the payback period of the investment. b. Find the accounting rate of return based on average investment.

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.