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The institute of Electronics and Communications Engineers of the Philippines (IECEP)...

This question belongs to Civil Engineering Engineering Economics
Engineering Economics
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The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are:
A. The construction of the building now to cost P 400,000
B. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.
By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected?

Answer & Solution
Correct Answer: Option D
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2 Comments
Jane Feliciano
Jane Feliciano 6 years ago
Solution please.
Jhobelyn Mae
Jhobelyn Mae 6 years ago
How?
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