The Philippine Institute of Civil Engineers is planning to construct its own building. Two proposals are being considered: (a) The construction of the building now to cost PhP 400,000.00 (b) The construction of a smaller building now, to cost PhP 300,000.00 and at the end of 5 years, an extension to be added to cost PhP 200,000.00 Which proposal is more economical if interest is 20%, depreciation is disregarded and by how much?

Structural Analysis
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ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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The Philippine Institute of Civil Engineers is planning to construct its own building. Two proposals are
being considered:
(a) The construction of the building now to cost PhP 400,000.00
(b) The construction of a smaller building now, to cost PhP 300,000.00 and at the end of 5 years, an
extension to be added to cost PhP 200,000.00
Which proposal is more economical if interest is 20%, depreciation is disregarded and by how much?
Transcribed Image Text:The Philippine Institute of Civil Engineers is planning to construct its own building. Two proposals are being considered: (a) The construction of the building now to cost PhP 400,000.00 (b) The construction of a smaller building now, to cost PhP 300,000.00 and at the end of 5 years, an extension to be added to cost PhP 200,000.00 Which proposal is more economical if interest is 20%, depreciation is disregarded and by how much?
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