A new watfer freatment plant proposed for Anyfown, has an inifial cost of P56 million. The new plant will service the 7,500 residential customers for the next 30 years. It is expected to save each customer P125 per year. The plant will require a major overhaul every 5 years, costing Plmillion. Determine the benefit/cost ratio at the city's interest rate of 6%. Use PW and EUAC.
A new watfer freatment plant proposed for Anyfown, has an inifial cost of P56 million. The new plant will service the 7,500 residential customers for the next 30 years. It is expected to save each customer P125 per year. The plant will require a major overhaul every 5 years, costing Plmillion. Determine the benefit/cost ratio at the city's interest rate of 6%. Use PW and EUAC.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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