A dam construction company has $2 billion available for investment. Project A yields an estimated $0.5 million

Question:

A dam construction company has $2 billion available for investment. Project A yields an estimated $0.5 million per year in benefits to the public on an investment of $1.5 billion and annual maintenance expenses of $5 million. Project B requires $3 billion, with maintenance expenses of $8 million per year and is expected to produce annual savings of $6 million. Both projects are expected to last 30 years. For a of 10%, compute the benefit-cost ratio for each project and make a recommendation.
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...