n building their plant, the officers of the international leather company had the choice between alternatives: one alternative is to build in metro manila where the plant would cost p2,000,000. labor would cost annually p120,000 and annual overhead p40,000. taxes and insurance would total 5% of the first cost of the plant. the second alternative would be to build in bulacan a plant costing p2,250,000. labor would cost annually p100,000 and overhead would be p55,000. taxes and insurance would total 3% of the first cost. the cost of raw materials would be the same in either plant. if capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose?
n building their plant, the officers of the international leather company had the choice between alternatives: one alternative is to build in metro manila where the plant would cost p2,000,000. labor would cost annually p120,000 and annual overhead p40,000. taxes and insurance would total 5% of the first cost of the plant. the second alternative would be to build in bulacan a plant costing p2,250,000. labor would cost annually p100,000 and overhead would be p55,000. taxes and insurance would total 3% of the first cost. the cost of raw materials would be the same in either plant. if capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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in building their plant, the officers of the international leather company had the choice between alternatives: one alternative is to build in metro manila where the plant would cost p2,000,000. labor would cost annually p120,000 and annual overhead p40,000. taxes and insurance would total 5% of the first cost of the plant. the second alternative would be to build in bulacan a plant costing p2,250,000. labor would cost annually p100,000 and overhead would be p55,000. taxes and insurance would total 3% of the first cost. the cost of raw materials would be the same in either plant. if capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose?
Transcribed Image Text:Maps News
1.6 Assignment No. 1 Welcome to ARIS St..
From Dusk Till Daw...
YouTube
Gmail
Maps
Allowed Attempts I
Available Sep 28 at 1zam -Oct 10 at 6pm 13 days
1. In building their plant, the officers of the International Leather Company had the choice bewee
alternatives:
One alternative is to build in Metro Manila where the plant would cost P2,000,000. Labor would cost
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annually P120,000 and annual overhead P40,000. Taxes and insurance would tatal 5% of the firsd
the plant.
The second alternative would be to build in Bulacan a plant costing P2.250,000. Labor would cost
annually P100,000 and overhead would be P55,000. Taxes and insurance would total 3% of the fst cost
rations
The cost of raw materials would be the same in either plant. If capital must be recovered within 10 years
and money is worth at least 20%, which site should the officers of the company choose?
anila Library
abon
2. It is proposed to place a cable on an existing pole line along thé shore of a lake to connect
on opposite sides.
MS
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37/assignments/692261
1.6 Assignment No. 1
Allowed Attempts
aps News
Welcome to ARIS St...
From Dusk TilI Daw...
Maps
Gmail
YouTube
Available Sep 28 at 12am - Oct 10 at 6pm 13 days
1. In building their plant, the officers of the International Leather Company had the choice between
alternatives:
hon
One alternative is to build in Metro Manila where the plant would cost P2,000,000. Labor would cost
annually P120,000 and annual overhead P40,000. Taxes and insurance would total 5% of the first cost
the plant.
The second alternative would be to build in Bulacan a plant costing P2,250,000. Labor would cost
annually P100,000 and overhead would be P55,000. Taxes and insurance would total 3% of the first cost.
The cost of raw materials would be the same in either plant. If capital must be recovered within 10 vears
and money is worth at least 20%, which site should the officers of the company choose
2. t is proposed to place a cable on an existing pole line along thé shore of a lake to connect twoint
e sides
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