A public work project has an initial cost of P50,000,000, benefits with a present worth of P75,000,000 and disbenefits with a present worth of P15,000,000. (a) what is the benefit-cost ratio? (b) what is the excess of benefits over costs?

A public work project has an initial cost of P50,000,000, benefits with a present worth of P75,000,000 and disbenefits with a present worth of P15,000,000. (a) what is the benefit-cost ratio? (b) what is the excess of benefits over costs?

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Description: A public work project has an initial cost of P50,000,000, benefits with a present worth ofP75,000,000 and disbenefits with a present worth of P15,000,000. (a) what is the benefit-costratio? (b) what is the excess of benefits over costs?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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