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Cost for 1-5 years

Daisy Tara
Yearly lease payment P30,000 
Operational cost per year 9,000.00
Yearly cost - 39,000.00
Cash outflow per year - 39,000.00
PVIFA (4%,5) 4.45
Present vaule - 173,620.98

Cash flow 6-10 years


Cash inflow 60,000.00
Less:
Yearly lease payment 30,000.00
Operational cost per year 12,000.00
Net cash flow A 18,000.00
PVIFA (4%,10)-(4%,5)=(8.11090-4.45182) B 3.66
Present value A*B 65,863.44

Cash flow 11-30 years


Cash inflow 110,000.00
Less:
Yearly lease payment 30,000.00
Operational cost per year 12,000.00
Net cash flow A 68,000.00
PVIFA (4%,30)-(4%,10)=(17.29203-8.11090) B 9.18
Present value A*B 624,316.84

Cash flow 31-40 years


Cash inflow 80,000.00
Less:
Yearly lease payment 30,000.00
Operational cost per year 12,000.00
Net cash flow A 38,000.00
PVIFA (4%,40)-(4%,30)=(19.79277-17.29203) B 2.50
Present value A*B 95,028.12

Minimum Price 611,587.42

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