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?
A. P 19,122.15
B. P 19,423.69
C. P 19,518.03
D. P 19,624.49
Answer: Option D
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Related Questions on Engineering Economics
The CRF (ep) is also known as: [CRF(EP) - 8% - 7], where
A. 8% is the rate of interest per year
B. Money is borrowed for n = 7 years
C. Both (A) and (B)
D. Neither (A) nor (B)
A. Sole proprietorship
B. Entrepreneurship
C. Partnership
D. Corporation
A. P 43,600.10
B. P 43,489.47
C. P 43,263.91
D. P 43,763.20
A. Architect/engineer
B. Construction manager
C. Owner himself/herself
D. Construction manager
Solution please.
How?