3. The National Irrigation Administration is studying which of the two big ticket project to undertake. Only one can be chosen. The estimated cash flow is described below: Proposed Construction of: 1) Major Dam in Siera Madre: Initial Cost: P 26 million; Benefits: P8.25 million per year; Disbenefits: P 2.35 million per year; Salvage value: 2.5 million; Life: 35 years 2) Major Dam along the Agno River : Initial Cost: 35 million; Benefits: 7.15 million per year; Disbenefits: 2.0 million per year; Salvage Value: P1.75 million; Life 35 years.

3. The National Irrigation Administration is studying which of the two big ticket project to undertake. Only one can be chosen. The estimated cash flow is described below: Proposed Construction of: 1) Major Dam in Siera Madre: Initial Cost: P 26 million; Benefits: P8.25 million per year; Disbenefits: P 2.35 million per year; Salvage value: 2.5 million; Life: 35 years 2) Major Dam along the Agno River : Initial Cost: 35 million; Benefits: 7.15 million per year; Disbenefits: 2.0 million per year; Salvage Value: P1.75 million; Life 35 years.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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