rrigation canals are proposed to be built in an arid region. The initial cost is estimated to be P2.5M with annual maintenance & operation cost of P48k. For maximum efficiency, the canal will be dredged every 5 years at a cost of P50k. Annual income from farmers & cooperatives who benefit from the project is expected to be P320k. Assuming an annual interest rate of 9% and a 30-year planning horizon, what is the computed ratio? a). 0.86 b).1.068 c).1.608 d). 0.68
rrigation canals are proposed to be built in an arid region. The initial cost is estimated to be P2.5M with annual maintenance & operation cost of P48k. For maximum efficiency, the canal will be dredged every 5 years at a cost of P50k. Annual income from farmers & cooperatives who benefit from the project is expected to be P320k. Assuming an annual interest rate of 9% and a 30-year planning horizon, what is the computed ratio? a). 0.86 b).1.068 c).1.608 d). 0.68
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Irrigation canals are proposed to be built in an arid region. The initial cost is estimated to be P2.5M with annual maintenance & operation cost of P48k. For maximum efficiency, the canal will be dredged every 5 years at a cost of P50k. Annual income from farmers & cooperatives who benefit from the project is expected to be P320k. Assuming an annual interest rate of 9% and a 30-year planning horizon, what is the computed ratio?
a). 0.86
b).1.068
c).1.608
d). 0.68
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