/C ratio (modified) of a building that houses students during their classroom discussion. The accommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its construction costs for about 2.3 M. If sold 20 years from its first operating year, it will amount to P
/C ratio (modified) of a building that houses students during their classroom discussion. The accommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its construction costs for about 2.3 M. If sold 20 years from its first operating year, it will amount to P
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 2P
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Question
Calculate the B/C ratio (modified) of a building that houses students during their classroom discussion. The
accommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its construction
costs for about 2.3 M. If sold 20 years from its first operating year, it will amount to P250,000. Take MARR = 15%
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