a the work on time. As provided for in the contract, he has to p quidated damages equivalent to one-fourth of one percent of

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
Problem 4.8P
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ya
ETO J.
TIN 3
EXERCISE-8
PRESENT ECONOMY
1. A contractor who was awarded a P4,500,000.00 contract to build a dam failed
to finish the work on time. As provided for in the contract, he has to pay a
daily liquidated damages equivalent to one-fourth of one percent of the
contract price for the first 10 days of the delay, one-half percent per day for the
next ten days and one percent per day for every day thereafter. If the total
penalty was P607,500.00, how many days was the completion of the contract
delayed?
ES
P 4500000
Transcribed Image Text:ya ETO J. TIN 3 EXERCISE-8 PRESENT ECONOMY 1. A contractor who was awarded a P4,500,000.00 contract to build a dam failed to finish the work on time. As provided for in the contract, he has to pay a daily liquidated damages equivalent to one-fourth of one percent of the contract price for the first 10 days of the delay, one-half percent per day for the next ten days and one percent per day for every day thereafter. If the total penalty was P607,500.00, how many days was the completion of the contract delayed? ES P 4500000
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