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The city has a budget of $200m, and would like to choose among three projects A, B, or C. The projects have the following benefits
The city has a budget of $200m, and would like to choose among three projects A, B, or C. The projects have the following benefits and costs: (Tip: use ctrl+ c to copy to excel). Project Costs 1 2 3 4 A 230 10 15 15 B 80 0 0 40 20 20 20 20 Using a 5% discount rate: 150 5 15 255 20 0 Use the above information to: (1) (10 Marks) complete the following information Project Costs PV(B) NPV RankNPV BCR RankBCR A 150 80 40 (2) (30 Marks) Use the information in the table to make a recommendation, explaining_your choice in each of the following cases. a. The projects were mutually exclusive b. If these projects were independent, and indivisible (your budget is $200m) c. if the projects were independent, and divisible (your budget is $200m)
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