To remedy the traffic situation at a busy intersection in Mandaluyong City, two plans are being considered: PLAN A Build a complete cost of P 6,500.00 which would provide for all needs during the next 30 years. Maintenance costs are estimated to be P 24,000.00 a year for the second years. PLAN B Build a partial cloverleaf at a cost of P 65,000.00 which would be sufficient for the next 15 years. At the end of 15 years, the cloverleaf will be completed at an estimated cost of P 7,500,000.00. Maintenance cost would be P 16,800.00 a year during the first 5 years and P 36,000.00 for the second years. If money is worth 18%, which of the two plans would you recommend using Present Worth Cost Method?
To remedy the traffic situation at a busy intersection in Mandaluyong City, two plans are being considered: PLAN A Build a complete cost of P 6,500.00 which would provide for all needs during the next 30 years. Maintenance costs are estimated to be P 24,000.00 a year for the second years. PLAN B Build a partial cloverleaf at a cost of P 65,000.00 which would be sufficient for the next 15 years. At the end of 15 years, the cloverleaf will be completed at an estimated cost of P 7,500,000.00. Maintenance cost would be P 16,800.00 a year during the first 5 years and P 36,000.00 for the second years. If money is worth 18%, which of the two plans would you recommend using Present Worth Cost Method?
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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To remedy the traffic situation at a busy intersection in Mandaluyong City, two plans are being considered:
PLAN A
Build a complete cost of P 6,500.00 which would provide for all needs during the next 30 years. Maintenance
costs are estimated to be P 24,000.00 a year for the second years.
PLAN B
Build a partial cloverleaf at a cost of P 65,000.00 which would be sufficient for the next 15 years. At the end of 15
years, the cloverleaf will be completed at an estimated cost of P 7,500,000.00. Maintenance cost would be P
16,800.00 a year during the first 5 years and P 36,000.00 for the second years.
If money is worth 18%, which of the two plans would you recommend using Present Worth Cost Method?
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