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To address the chronic traffic condition at a major thoroughfare, two plans are being considered. Plan A is to build a complete flyover costing P2
To address the chronic traffic condition at a major thoroughfare, two plans are being considered. Plan A is to build a complete flyover costing P2 Billion, which would provide for all needs during the next 20 years. Annual maintenance costs are estimated to be P2M for the first 10 years and P3M for the next 10 years. Plan B is to build a partial flyover at a cost of P1Billion, which would be enough for the next 10 years. At the end of 10 years, the flyover will be completed at an estimated cost of P1.646.154.681. Annual maintenance would cost P69.905.060 during the first 10 years and P78,962,297 for the next 10 years. The money is worth 24%, what is the Present Value of Plan B
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