Calculate the B/C ratio (modified) of a building that houses students during their classroom discussion. The accommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its construction costs for about 2.3 M. If sold 20 years from its first operating year, it will amount to P250,000. Take MARR = 15% Please solve using economics formula.

Calculate the B/C ratio (modified) of a building that houses students during their classroom discussion. The accommodation equates to P525,000 annually. However, the annual maintenance is P135,000. Its construction costs for about 2.3 M. If sold 20 years from its first operating year, it will amount to P250,000. Take MARR = 15% Please solve using economics formula.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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