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A government organization working in the field of sustainability comes up with three possible projects as shown below: Item Project A Project B Project
A government organization working in the field of sustainability comes up with three possible projects as shown below: Item Project A Project B Project C Investment 275,000 234,000 315,000 Operating cost per year 66,000 58,000 66,000 Benefit per year 98,000 85,000 103,000 Salvage value @ 12 years 82,000 45,000 91,000 Note: All monitory values are in AED Due to the funding limitation, the organization can select only one project out of these three options. Considering 5% as a MARR and using B-C ratio analysis, identify which project the organization should select? Use modified B-C ratio with Annual worth (AW) formulation to solve the problem. B-C = AW (B)-AW(O&M) CR (11.0)
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