10.4 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B PW(benefits) $19 000 000 $15 000 000 PW(operating and maintenance costs) 5 000 000 8 000 000 PW(capital cost) 5 000 000 1 000 000 a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.
10.4 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B PW(benefits) $19 000 000 $15 000 000 PW(operating and maintenance costs) 5 000 000 8 000 000 PW(capital cost) 5 000 000 1 000 000 a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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plz do only d AND e PLZ
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