Assignment No.3 -G: Benefit/Cost Method15. The construction cost of the bypass is P20 million, and P500,000 wouldbe required each year for annual maintenance. The annual benefits tothe public have been estimated to be P2 million. If the study period is 50years and the state's interest rate is 8% per year, should the bypass beconstructed?

The total discounted benefits are divided by the entire discounted costs to get the total discounted…

Answered: Assignment No.3 -G: Benefit/Cost Method…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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