The Fishery and Wildlife Agency of Ireland is considering four mutually exclusive design alternatives (Table P16-24) for a major salmon hatchery. This agency of the Irish government uses the following B/C ratio for decision making: BIC ratio = EW(Net benefits)/ EW(Capital recovery cost) + EW(O&M cost) Using an interest rate of 8% and a project life of 30 years, recommend which of the designs is best.

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Design Alternatives Irish Fishery First cost Annual benefits Annual O&M costs Annual disbenefits $9,500,000 $12,500,000 1,500,000 175,000 $14,000,000 1,000,000 325,000 $15,750,000 2,500.000 145,000 350,000 700,000 7,500,000 150,000 3,500,000 Salvage value 1,000,000 6,000,000