Question: Please write the CBA analysis for these two options (10 points) Option A requires the purchase of a garbage collection vehicle that needs a two-person

Please write the CBA analysis for these two options (10 points)

Option A requires the purchase of a garbage collection vehicle that needs a two-person crew. The vehicle will cost $60,000 and each worker will be paid $12,000 a year. The city would pick up 300 tons of garbage annually, and for each ton of garbage collected, it would charge a $400 fee. The city would have annual revenue of $120,000 (300 $400) from this operation.

Option B requires a vehicle for a three-person crew. The vehicle will cost $80,000 and each worker will be paid $10,000 annually. With this option, the citys garbage collection capacity would be 300 tons annually, so the annual revenue would be $120,000 (300 $400).

Using a five-year period and a discount rate of 5 percent, which option should be recommended in the budget request?

Please fill in the correct answer in each blank provided below. Project A.

NPV

Present value of Benefits

Present value of Costs

Please fill in the correct answer in each blank provided below. Project B.

NPV

Present value of Benefits

Present value of Costs

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