F. The College of Engineering is planning to put up its own laboratory building. Two proposals being considered are: AThe construction of the building now to cost P4 000 000 B The construction of a smaller building now to cost P 3 000, 000 and at the end of 5 years an extension to be added to cost P2, 000, 00O CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a P 150,000 b. P 169 000 c. P130 000 d. none of the above

F. The College of Engineering is planning to put up its own laboratory building. Two proposals being considered are: AThe construction of the building now to cost P4 000 000 B The construction of a smaller building now to cost P 3 000, 000 and at the end of 5 years an extension to be added to cost P2, 000, 00O CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a P 150,000 b. P 169 000 c. P130 000 d. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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