Two proposals are being considered by a company for building a bottling plant. These are: Proposal A:The construction of a building now costing P700,000. Proposal B: The construction of a smaller building now costing P600,000, and an additional wing costing P200,000 at the end of 10 years. Assuming depreciation to be negligible, which of the two proposals is more economical if interest is at 6%?

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