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2. Reginald need to decide between two projects depending on benefit cost analysis. He will choose project that gives him higher benefit-cost ratio. Please calculate
2. Reginald need to decide between two projects depending on benefit cost analysis. He will choose project that gives him higher benefit-cost ratio. Please calculate benefit-cost ratio separately for these two projects A and B and guide Reginald which one to choose. Show all your step. (25 points) A. A heard of young cattle which costs $5,000 in year 1 and $500 per year of maintenance cost in year 2 and year 3. In each year: yearl, year2, and year 3, it generates $2,000 of cash inflow. Assume these 3 years as total life of the project and 10% discount rate in calculation B. Design a poultry farm which costs $3000 in year 1 and $50 per year of maintenance costs in year2 and year 3. In each year, it generates cash inflow of $1,000. Consider these 3 years as total life of the project and 10% discount rate in calculation
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