A large sewer system will cost P8,750,000 annually. There will be favorable consequences to the general public of P25,000,000 annually and adverse consequences to a small segment of the public of P2,500,000 annually. What is the benefit to cost ratio?

A large sewer system will cost P8,750,000 annually. There will be favorable consequences to the general public of P25,000,000 annually and adverse consequences to a small segment of the public of P2,500,000 annually. What is the benefit to cost ratio?

A. 2.57 C. 2.55
B. 2.56 D. 2.58

Solution