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The town council of Cato Springs is considering two alternative investments to upgrade and expand its springfed recreational area. The two investment alternatives ( A
The town council of Cato Springs is considering two alternative investments to upgrade and expand its springfed recreational area. The two investment alternatives ( A and B ) have different costs and will produce different public benefits. The projected costs and benefits over a 10 -year planning horizon for the two alternatives are given below. Using a MARR of 10.0%, which, if either, of the alternatives should be pursued by the Cato Springs city council? Alternative A s PW(C)=$ Alternative B's PW(C) = \$ Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is \pm 100 . has a smaller present worth of costs, so it should be denoted Alternative 1. Respectively, has a higher present worth of costs and should be denoted Alternative 2. Assume that "Do nothing" is Alternative 0 . Calculate the ratios of present worth of benefits to present worth of costs for each pair of alternatives
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