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If we ignore the issue of discounting (discount rate = 0.0%), would you recommend the first strategy (Policy I) or the second strategy (Policy II)?
If we ignore the issue of discounting (discount rate = 0.0%), would you recommend the first strategy (Policy I) or the second strategy (Policy II)? To answer this question, you need to calculate the total cost of both policies over the entire ten-year period and the total benefit of each policy over the entire ten-year period. To keep your analysis as simple as possible I assumed both policies generate the same benefit stream over the entire ten-year planning period. Calculate both the net benefit of each policy and the benefit cost ratio for each policy with no discounting. In answering the above
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