The government intends to build a sports center at a total cost of P250,000,000. The project will be financed by a foreign loan with an interest rate of 3% per year. The total annual cost for operating the facility would total P15,000,000. Annual revenues and benefits are estimated to be P45,000,000. If the structure is expected to last 40 years with no salvage value, calculate the following based on the equivalent uniform annual cost (EUAC) method: a. how much is the annual benefit of the project (in Php)? b. how much is the annual cost of the project (in Php)? c. what is the benefit cost ratio of the project?

The government intends to build a sports center at a total cost of P250,000,000. The project will be financed by a foreign loan with an interest rate of 3% per year. The total annual cost for operating the facility would total P15,000,000. Annual revenues and benefits are estimated to be P45,000,000. If the structure is expected to last 40 years with no salvage value, calculate the following based on the equivalent uniform annual cost (EUAC) method: a. how much is the annual benefit of the project (in Php)? b. how much is the annual cost of the project (in Php)? c. what is the benefit cost ratio of the project?

Name: The government intends to build a sports center at a total cost of P2
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Description: The government intends to build a sports center at a total cost of P250,000,000. The project will be financed by a foreign loan with an interest rate of3% per year. The total annual cost for operating the facility would total P15,000,000. Annual rev

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 8P: The Rodriguez Company is considering an average-risk investment in a mineral water spring project...

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