economics

Q5): A Ministry is considering proposals for rehabilitation of a certain public asset. All the proposals involve initial investment and benefits (no dis-benefits or running costs). An incremental B/C analysis was initiated, but the engineer conducting the study left recently. (a) Fill in the blanks in the incremental B/C portion of the table. 8 marks) (b) Based on incremental benefit cost analysis, which alternative should be selected? (12 marks) Alternative Initial Present B/C Incremental B/C when compared Investment value of ration with alternative ($ Benefits B D millions) A 10 1.1 2.83 B 40 2.4 2.83 50 1.4 D 80 1.5 A