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Which do you recommend and why? Policy A PV of costs: 5, PV of benefits: 100, NPV=100-5=95, B/C Ratio=100/5=20 Policy B PV of costs: 100,

Which do you recommend and why?

Policy A

PV of costs: 5, PV of benefits: 100, NPV=100-5=95, B/C Ratio=100/5=20

Policy B

PV of costs: 100, PV of benefits: 500, NPV=500-100=400, B/C ratio=500/100=5

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