Proposals Present Worth A1 A2 A3 B $400 $700 $500 $100 $300 $200 C' $100 $200 $150

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Three public investment alternatives are available: A1, A2, and A3. Their respective total benefits, costs, and first costs are given in present worth as follows:

These alternatives have the same service life. Assuming that there is no donothing alternative, which project would you select, calculating on the basis of the benefit-cost ratio on incremental investment (BC(i))?

Proposals
Present Worth
A1
A2
A3
B
$400
$700
$500
$100
$300
$200
C'
$100
$200
$150
Transcribed Image Text:Proposals Present Worth A1 A2 A3 B $400 $700 $500 $100 $300 $200 C' $100 $200 $150
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