Question: 10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B 17 000 000 17 000 000 5

10.5 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Project B 17 000 000 17 000 000 5 000 000 11 000 000 6 000 000 1 000 000 PW(benefits) PW(operating and maintenance costs) PW(capital cost) a. Compute the benefit-cost ratios for both projects. b. Compute the modified benefit-cost ratios for both projects. c. Compute the benefit-cost ratio for the increment between the projects. d. Compute the present worths of the two projects. e. Which is the preferred project? Explain.

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