Disney is considering four alternatives, say W, X, Y, Z, for a project. Due to thier limited top secret budget, only one alternative will be implemented. Project W requires an initial investment of $20 million. The annual benefit will be $5 million, and the annual cost will be $2.5 million. The discount rate is 6%. There is no salvage after its 15-year life.

a) Find the benefit-cost ratio for Project W. Determine if this project should be implemented.

b) Estimated present values of costs and benefits of Projects X, Y, Z are shown in millions of dollars below. All of the projects have the same duration as Project W. Assuming that there is no do-nothing alternative, which alternative among the 4 projects would you select? Justify your choice using the benefit-cost analysis.

Projects	PW of Costs	Pw of Benefits
X	60	90
Y	100	90
Z	140	180