F. The College of Engineering is planning to put up its own laboratory building. Two proposals being considered are: A.The construction of the building now to cost P4, 000, 000. B.The construction of a smaller building now to cost P 3, 000, 000 and at the end of 5 years, an extension to be added to cost P2, 000, 000. CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a. P 150,000 b.P 169,000 C. P 130,000 d. none of the above

F. The College of Engineering is planning to put up its own laboratory building. Two proposals being considered are: A.The construction of the building now to cost P4, 000, 000. B.The construction of a smaller building now to cost P 3, 000, 000 and at the end of 5 years, an extension to be added to cost P2, 000, 000. CO3 12. By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected? a. P 150,000 b.P 169,000 C. P 130,000 d. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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