Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The Department of Public Works and Highways is considering the construction of a new
highway through a scenic rural area. The road is expected to cost P 50M with annual upkeep
estimated at P400,000. The improved accessibility is expected to result in additional income
from tourists of P7M per year. The road is expected to have a useful life of 25 years. If the rate
of interest is 15%, find the benefit cost ratio.
Select the correct response:
5.0860
0.8605
0.6085
5.6086
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