Find Incremental benefit/cost ratio of Project 1 and 3.

Find Incremental benefit/cost ratio of Project 2 and 3.

Project 1 costs A initially, costs B every year, generates C benefits every year and D disbenefits every year with a life of 5 years. Project 2 costs E initially, cost Fevery year, generates G benefits every year and H disbenefits every year with a life of 6 years. Project 3 costs I initially, costs J every year, generates K benefits every year and L disbenefits every year with a life of 10 years. Use an annual rate of R to conduct Incremental B/C ratio analyses to answer Problem 3 and 4. "Do Nothing" is not an option. Use Conventional B/C Ratio Analysis R= 8.00% A = 120 B = 30 C = 45 D = E = 165 F = H= K = 60 L = 8 28 50 10 330 20 13