Use a 5 percent discount rate to compute the NPV for both projects.

Cost-Benefit Analysis for Two Public Infrastructure Projects ($)
Cost Year Personnel Operating Capital Benefit Project A 0 (the current year) 300,000 0 200,000 0 1 150,000 2,000 100,000 0 2 100,000 15,000 25,000 30,000 3 0 21,000 0 150,000 4 0 21,000 0 200,000 5 0 21,000 0 200,000 6 0 21,000 0 200,000 7 0 21,000 0 200,000 8 0 25,000 0 200,000 9 0 25,000 0 200,000 10 0 25,000 0 200,000 Project B 0 (the current year) 500,000 0 125,000 0 1 100,000 12,500 25,000 187,500 2 0 25,000 0 187,500 3 0 25,000 0 187,500 4 0 25,000 0 187,500 5 0 25,000 0 187,500 6 0 25,000 0 187,500 7 0 25,000 0 187,500 8 0 25,000 0 187,500 9 0 25,000 0 187,500 10 0 25,000 0 187,500