The Company purchased a lot for P250k on which they will construct a building with 3 estimates tabulated below. Determine which alterative should be selected using Benefit Cost Analysis at 10%: Building Height 4 stories 8 stories 12 stories Cost of Building P650k P1.5M P2.4M Resale Value at the end of 30 yrs 350k 720k
The Company purchased a lot for P250k on which they will construct a building with 3 estimates tabulated below. Determine which alterative should be selected using Benefit Cost Analysis at 10%: Building Height 4 stories 8 stories 12 stories Cost of Building P650k P1.5M P2.4M Resale Value at the end of 30 yrs 350k 720k
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Company purchased a lot for P250k on which they will construct a building with 3 estimates tabulated below. Determine which alterative should be selected using Benefit Cost Analysis at 10%:
Building Height |
4 stories |
8 stories |
12 stories |
Cost of Building |
P650k |
P1.5M |
P2.4M |
Resale Value at the end of 30 yrs |
350k |
720k |
1M |
Net Annual Income |
120k |
250k |
340k |
a. P62,656.413
b. P26,656.413
c. P276,656.413
d. P6,656.413
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