The Department of Works is proposing a new road construction and maintenance for Kampung Kota Dalam. Parit Raja, Batu Pahat, Johor. A new road will allow access to the new development area that previously could only be reached with off- road vehicles. The cost of rural road construction is expected to be RM600,000. The road will require annually maintenance work cost of RM30,000. The improved accessibility will led to a 20% increase in the property values along the road. Examine whether the project should be proceeded or not by determining the conventional B/C ratio with PW using an interest of 5% per year if the previous market value of a property was RM500,000. Consider (11) year of study period in your analysis.,.

The Department of Works is proposing a new road construction and maintenance for Kampung Kota Dalam. Parit Raja, Batu Pahat, Johor. A new road will allow access to the new development area that previously could only be reached with off- road vehicles. The cost of rural road construction is expected to be RM600,000. The road will require annually maintenance work cost of RM30,000. The improved accessibility will led to a 20% increase in the property values along the road. Examine whether the project should be proceeded or not by determining the conventional B/C ratio with PW using an interest of 5% per year if the previous market value of a property was RM500,000. Consider (11) year of study period in your analysis.,.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 5R

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