The government is considering undertaking four projects. These projects are mutually exclusive, and the estimated present worth of their costs and the present worth of their benefits are shown in millions of dollars in the table below. All of the projects have the same duration. Assuming no do-nothing alternative, which alternative would you select? Justify your choice by using a benefit-cost (BC()) analysis on incremental investment. Click the icon to view the data for the four projects. Which project(s) should be excluded from subsequent consideration? Select all that apply. A. None of the projects B. Project A2 C. Project A1 D. Project A3 E. Project A4 Fill in the table below. (Round to two decimal places.) Project A1 A2 A3 A4 Incremental Investment A4-A3 A2-A4 I BC (1) 47 1.36 2.8 1.64 BC(0) K-J

The government is considering undertaking four projects. These projects are mutually exclusive, and the estimated present worth of their costs and the present worth of their benefits are shown in millions of dollars in the table below. All of the projects have the same duration. Assuming no do-nothing alternative, which alternative would you select? Justify your choice by using a benefit-cost (BC()) analysis on incremental investment. Click the icon to view the data for the four projects. Which project(s) should be excluded from subsequent consideration? Select all that apply. A. None of the projects B. Project A2 C. Project A1 D. Project A3 E. Project A4 Fill in the table below. (Round to two decimal places.) Project A1 A2 A3 A4 Incremental Investment A4-A3 A2-A4 I BC (1) 47 1.36 2.8 1.64 BC(0) K-J

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The government is considering undertaking four projects. These projects are mutually exclusive, and the estimated present worth of their costs and the present worth of their benefits are shown in millions of
dollars in the table below. All of the projects have the same duration.
Assuming no do-nothing alternative, which alternative would you select? Justify your choice by using a benefit-cost (BC()) analysis on incremental investment.
Click the icon to view the data for the four projects.
Which project(s) should be excluded from subsequent consideration? Select all that apply.
A. None of the projects
B. Project A2
C. Project A1
D. Project A3
E. Project A4
Fill in the table below. (Round to two decimal places.)
Project
A1
A2
A3
A4
www
Incremental
Investment
A4 - A3
A2 - A4
BC(1)
47
1.36
2.8
1.64
BC(1) K-j

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