14.) The Department of Public Works and Highways (DPWH) is considering the construction of a new highway through a scenic rural area. The road is expected to cost P50M with annual upkeep estimated at P400,000. The improved accessibility is expected to result in additional income from tourists of P7 million per year. The road is expected to have a useful life of 25 years. If the rate of interest is 15%, should the road be constructed?

14.) The Department of Public Works and Highways (DPWH) is considering the construction of a new highway through a scenic rural area. The road is expected to cost P50M with annual upkeep estimated at P400,000. The improved accessibility is expected to result in additional income from tourists of P7 million per year. The road is expected to have a useful life of 25 years. If the rate of interest is 15%, should the road be constructed?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1
Learning 9g.cengage.com/static/nb/ui/evo/index.html?deploymentld%35982812479578414089770649020&elSBN=978035; A Tax Document E ECSI - TaxSelect Do. SeAccount Quick Car. B Calendar | Navigate Main Street Comm. CENGAGE MINDTAP Homework (Ch 10) Back to Assignment Attempts Keep the Highest/1 4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to increased air pollution. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy isted, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax Tradable Permit System Corrective Subsidy Command-and- Corrective Public Policy Control Policy Tax The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. Trees take cartbon dioxide out of the air and convert it to okygen, so the…
Output TFC 0 $500 2 500 4 CO 00 6 8 10 500 500 500 500 TVC $0 200 340 590 1000 1650 TC $500 700 840 1090 1500 2150
Shane teaches guitar lessons. The graph below shows the comparison of his expenses and revenue for one month. r ($) L -1000 000 -600 200 Number of Lessons Expenses Revenue How many lessons must he teach to break even?