The Ministry of Works and Supply has plans to construct a network on roads and tollgates in Vubwi strict. Its permanent Secretary presents this plan to cabinet asking for approval and argues that though the project costs a lot of money at present, it will yield very significant benefits for the next 20 ars. He presents the following summary of costs and revenues shown in Table 1. Table 1 Summary of costs and benefits for proposed road project Year of activity Activity Road Construction 0 Costs ZMW) 400 (million Benefits (million ZMW)
The Ministry of Works and Supply has plans to construct a network on roads and tollgates in Vubwi strict. Its permanent Secretary presents this plan to cabinet asking for approval and argues that though the project costs a lot of money at present, it will yield very significant benefits for the next 20 ars. He presents the following summary of costs and revenues shown in Table 1. Table 1 Summary of costs and benefits for proposed road project Year of activity Activity Road Construction 0 Costs ZMW) 400 (million Benefits (million ZMW)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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