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02-06-2023
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The contract of a new public-private partnership (PPP) project has been signed to lease a building at P20,000 per year with an annual increase of P1,500 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate of money is 7%. What lump sum paid today would be equivalent to the 8 -year lease payment plan of the PPP project

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