1. Complying with all government housing regulations and requirements, the employees

Union of a certain firm has the option to purchase either of two sites, each having an area of 18 hectares (180,000 sq.m.) of undeveloped land. The first singly owned, would cost P20.00 a sq.m. but would need a roadway system, including the access road, 4,000 meters long, at a cost of P110.00 per meter. Additional development expenses would be P60,000.00 to subdivide and grade into 320 house lots, and another P32,000.00 for a hollow block fence and security gates.

The second site consists of 3 lots, separately owned, with a total area of 18 hectares, then 7 hectares at P25.00 a sq.m. 5 hectares at P21.00 a sq.m., and 6 hectares at P14.00 a sq.m. The road system for this site would be only 3,200 meters long at P100.00 per meter but needs two box culverts each costing P25.00. Lot grading would be P35,000.00, fencing and security gates P25,000.00.

Assuming that all other facilities would cost the same in both sites, which of the two sites would you recommend based on cost of site development alone?