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The government is considering undertaking the four projects listed below.These projects are mutually exclusive, and the estimated present worth of their costs and the present

The government is considering undertaking the four projects listed below.These projects are mutually exclusive, and the estimated present worth of their costs and the present worth of their benefits are shown in millions of dollars.All projects have the same duration.

Projects

PW of

Benefits

PW of

Costs

A1 40 85
A2 150 110
A3 70 25
A4 120 73

Assuming no do-nothing alternative, which alternative would you select?Justify your choice by using a benefit-cost (BC(i)) on incremental investment.

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