Engineering Economics - Civil Engineering Questions and Answers

Home / Civil Engineering / Engineering Economics :: Discussion

Discussion :: Engineering Economics

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?

P 19,122.15

P 19,423.69

P 19,518.03

P 19,624.49

View Answer