A proposed bridge considered at the cost of Php 20 million. It is expected that the bridge will last 20 years. Operation and maintenance costs are estimated to be Php 1,800,000 per year. Benefits to the public are estimated to be Php 9,000,000 per year. The building of the bridge will resul.t in an estimated cost of Php 2,500,000 per year to the general public. The interest rate is 10%. Determine the B/C ratio for the project.
A proposed bridge considered at the cost of Php 20 million. It is expected that the bridge will last 20 years. Operation and maintenance costs are estimated to be Php 1,800,000 per year. Benefits to the public are estimated to be Php 9,000,000 per year. The building of the bridge will resul.t in an estimated cost of Php 2,500,000 per year to the general public. The interest rate is 10%. Determine the B/C ratio for the project.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A proposed bridge considered at the cost of Php 20 million. It is expected that the bridge will last 20 years. Operation and maintenance costs are estimated to be Php 1,800,000 per year. Benefits to the public are estimated to be Php 9,000,000 per year. The building of the bridge will resul.t in an estimated cost of Php 2,500,000 per year to the general public. The interest rate is 10%. Determine the B/C ratio for the project.
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