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PROBLEM SET for benefit/cost ratio 1.Huawei Inc is confronted with four alternatives lventu res to provide telco to small towns as follows: Location Annual benefits

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PROBLEM SET for benefit/cost ratio 1.Huawei Inc is confronted with four alternatives lventu res to provide telco to small towns as follows: Location Annual benefits Annual Costs Tamnao, San Andres, Que. 15.28M 7.8M Buenavista 13.98M 6.64M Talisay, SAQ 9.6M 7.42M Bagbag, SNQ 8.1M 4.2M Solve for each benefit/cost ratio and select the best alternative .Justify your answer. 2.DPWH is planning to construct a new hi-way through a scenic rural area. The road is expected to cost 500M with annual maintenance estimated at 4M. They are expecting that said improvement can result attractions to more tourists and may increase their income to 70M per yea r. The road is expected to have a useful life of 30 years. if the rate of interest is 20%, should the road be constructed? Justify your answer. 3. SAQ municipality planned to involve in the following project. Initial cost 100M Proj. life, yea rs 10 years Salvage value 100K Annual benefits 600K Annual overhead and 220K Maintenance Interest rate,% 15 Calculate for the benefit/cost ratio and tell whether favorable or not 4.There are five alternatives for a construction of a research facility. Calculate and select the best alternative using benefit/cost ratio A 900M Annual benefit 10M Annual cost B 13M 14M C 28M 21M D 33M 27M E 42M 34M

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