Philippine Society of Civil Engineers is planning to put up its own building, and two proposals (5-year project) are being considered. The money is worth 20% compounded monthly. PROPOSAL A. The construction of the building to cost P246,933.00 at the end of 4 years and P162,751.00 for the next year. PROPOSAL B. The construction of the building now, to cost P55,016.00, P184,773.00 at the end of 4 years and an extension to be added a year after, to cost P92,348.00. Determine the following:
Philippine Society of Civil Engineers is planning to put up its own building, and two proposals (5-year project) are being considered. The money is worth 20% compounded monthly. PROPOSAL A. The construction of the building to cost P246,933.00 at the end of 4 years and P162,751.00 for the next year. PROPOSAL B. The construction of the building now, to cost P55,016.00, P184,773.00 at the end of 4 years and an extension to be added a year after, to cost P92,348.00. Determine the following:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A Philippine Society of Civil Engineers is planning to put up its own building, and two proposals (5-year project) are being considered. The money is worth 20% compounded monthly.
PROPOSAL A.
The construction of the building to cost P246,933.00 at the end of 4 years and P162,751.00 for the next year.
PROPOSAL B.
The construction of the building now, to cost P55,016.00, P184,773.00 at the end of 4 years and an extension to be added a year after, to cost P92,348.00.
Determine the following:
1. Equivalent present cost of Proposal A.
2. Equivalent present cost of Proposal B.
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