A certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m³ at pit ➖➖➖➖➖ P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m³ ➖➖➖➖➖➖ Hauling cost/m³/km P4 P4 What is the Total Cost of Source A
A certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two possible sources for the gravel with the following data: Source A Source B Average distance, gravel pit to dam site 3 km 1.2 km Gravel cost/m³ at pit ➖➖➖➖➖ P10 Purchase price of pit P800,000 Road construction necessary P450,000 Overburden to be removed at P4.20/m³ 90,000m³ ➖➖➖➖➖➖ Hauling cost/m³/km P4 P4 What is the Total Cost of Source A
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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Question
![A certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two
possible sources for the gravel with the following data:
Source A
Source B
Average distance, gravel pit to dam site
3 km
1.2 km
Gravel cost/m³ at pit
➖➖➖➖➖
P10
Purchase price of pit
P800,000
Road construction necessary
P450,000
Overburden to be removed at P4.20/m³
90,000m³
➖➖➖➖➖➖
Hauling cost/m³/km
P4
P4
What is the Total Cost of Source A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44e3fdea-1b7c-49c6-a1eb-199f68ea729c%2F8b9fa4cb-4573-4d54-9562-a763619e2d4d%2F52hw8uy_processed.png&w=3840&q=75)
Transcribed Image Text:A certain masonry dam requires 200,000 m³ of gravel for its construction. The contractor found two
possible sources for the gravel with the following data:
Source A
Source B
Average distance, gravel pit to dam site
3 km
1.2 km
Gravel cost/m³ at pit
➖➖➖➖➖
P10
Purchase price of pit
P800,000
Road construction necessary
P450,000
Overburden to be removed at P4.20/m³
90,000m³
➖➖➖➖➖➖
Hauling cost/m³/km
P4
P4
What is the Total Cost of Source A
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