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* Which alternative can be selected based on the Net Present Value Criterion? Why? Project W without a road and Project F with a road
Which alternative can be selected based on the Net Present Value Criterion? Why?
Project without a road and Project with a road can be selected on the NPV they have the highest
net present value.
Which project will you select based on the BenefitCost ratio criterion? Why?
Project without a road, it has a benefitscost ration of which is the highest among all the
projects.
Are the choices based on NPV and BC ratio consistent with each other? Explain.
Yes, Project without a road has the highest NPV and BC ratio. Even though Project with a road
also has the highest NPV it has a lower BC ratio.
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