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Accounting Jul 28, 2020

3. A residential project is bought at Php7.5M and loaned from an institutional investor. The projected gross income and expense of the project to be rented per month are Php96,000 and Php7,000 respectively · (a) Provide the income, balance sheet, and cash flow statement. (b) compare extensively the value generated if the loan is to be paid in 15 years against paying it in 30 years considering 6% annual rate of interest and an opportunity cost of 10% per annum.