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3. [Benefit Cost Analysis] Consider the following five projects. All the information you need is in the table- you don't need to worry about discounting,
3. [Benefit Cost Analysis] Consider the following five projects. All the information you need is in the table- you don't need to worry about discounting, inflation or taxes. Project Costs (S) Benefits (S) 21 75 85 65 98 97 140 125 a. (5 marks) Suppose the projects are independent and you have a budget of $90. Which projects, if any should you pay for? Show your work. (Hint: In this case, the rule of thumb is good enough.) Pay for projects: the projects are mutually exclusive. Use incremental benefit-cost analysis to find the preferred project. Show your work. Preferred Project: Work
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