A school building requires repainting. The surface area to be repainted is 1, 744 sq. mtrs. Two kinds of paint are available whose brands are A and B. Paint A cost ₱40 per sq. m. but needs renewal at the end of 4 yrs., while paint B cost ₱265 per sq. m. If money is worth 12% effective, how often should paint B be renewed so that it will be economical as paint A?

A school building requires repainting. The surface area to be repainted is 1, 744 sq. mtrs. Two kinds of paint are available whose brands are A and B. Paint A cost ₱40 per sq. m. but needs renewal at the end of 4 yrs., while paint B cost ₱265 per sq. m. If money is worth 12% effective, how often should paint B be renewed so that it will be economical as paint A?

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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A school building requires repainting. The surface area to be repainted is 1, 744 sq. mtrs. Two kinds of paint are available whose brands are A and B. Paint A cost ₱40 per sq. m. but needs renewal at the end of 4 yrs., while paint B cost ₱265 per sq. m. If money is worth 12% effective, how often should paint B be renewed so that it will be economical as paint A?
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