Question: To address the traffic situation at a busy intersection at EDSA, two plans are being considered. Plan A is to build a complete flyover costing

To address the traffic situation at a busy intersection at EDSA,

To address the traffic situation at a busy intersection at EDSA, two plans are being considered. Plan A is to build a complete flyover costing P2,258,102,134, which would provide for all needs during the next 20 years. Annual maintenance costs are estimated to be P61,018.903 for the first 10 years and P92.385.196 for the next 10 years. Plan B is to build a partial flyover at a cost of P1.25B, 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 P1.5B. Annual maintenance would cost P1.5M during the first 10 years and P3M for the next 10 years. The money is worth 20%, what is the Present Value of Plan A

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