Benefits Dis-benefits To the people P 15 Million now and P1.5 Million per year for ten years P 1 Million per year for five years Costs Savings To the Government P 100 Million now and P 10 Million three years from now. P 4 Million five years from now.

Benefits Dis-benefits To the people P 15 Million now and P1.5 Million per year for ten years P 1 Million per year for five years Costs Savings To the Government P 100 Million now and P 10 Million three years from now. P 4 Million five years from now.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter21: Contemporary Issues In The U.s. Economy

Section: Chapter Questions

Problem 1DQ

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Question

Given the following data, calculate the benefit cost ratio using an interest rate of 9% per year?

Benefits
Dis-benefits
To the people
P 15 Million now and P1.5
Million per year for ten
years
P 1 Million per year for
five years
Costs
Savings
To the Government
P 100 Million now and P 10
Million three years from now.
P 4 Million five years from now.

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