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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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