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 P30M with annual upkeep estimated at P300,000. The improved accessibility is expected to result in additional income from tourists of P6M 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: 2.1341 1.2143 2.1143 1.4213

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 P30M with annual upkeep estimated at P300,000. The improved accessibility is expected to result in additional income from tourists of P6M 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: 2.1341 1.2143 2.1143 1.4213

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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