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Project A Project B PW (benefits) $15 000 000 $17 000 000 PW (operating and $4 000 000 $11 000 000 maintenance costs) PW (capital
Project A Project B PW (benefits) $15 000 000 $17 000 000 PW (operating and $4 000 000 $11 000 000 maintenance costs) PW (capital costs) $5 500 000 1 000 000 a) Compute the benefit-cost ratios for both projects b) Compute the modified benefit-cost ratios for both projects c) Compute the benefit-cost ratio for the increment between the projects. d) Compute the present worths of the two projects. e) Which is the preferred option? Explain
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