The Philippine Institute of Industrial Engineers (PIIE) is planning to put up its own building. Two proposals being considered are: A. The construction of the building now to cost P400,000 B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P200,000 By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected

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