9. On January 1, 20X2, ABC Company signed an agreement to operate as franchisee of XYZ Company for an initial franchise fee of P 30,000,000. Of this amount, P 10,000,000 was paid when the agreement...

9. On January 1, 20X2, ABC Company signed an agreement to operate as franchisee of XYZ Company for an initial franchise fee of P 30,000,000. Of this amount, P 10,000,000 was paid when the agreement was signed and the balance is payable in equal annual payment of P 5,000,000 beginning December 31, 20X2. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. ABC’s credit rating indicates that it can borrow money at 12% for a loan of this type. Determine the cost of the franchise. (Use 4-decimal PVF)