Question: The following data are available for two mutually exclusive projects: Project #1 Project #2 Present Value (Benefits) $21,000,000 $14,500,000 Present Value (Operating and Maintenance Costs)

The following data are available for two mutually exclusive projects: Project

The following data are available for two mutually exclusive projects: Project #1 Project #2 Present Value (Benefits) $21,000,000 $14,500,000 Present Value (Operating and Maintenance Costs) $5,000,000 $6,000,000 Present Value (Capital Cost) $5,000,000 $1,000,000 1. What is the benefit-cost ratios (not Profitability Index) for Project #1 (worth 1 point) 2. What is the benefit-cost ratios (not Profitability Index) for Project #2 (worth 1 point) 3. What is the benefit-cost ratios (not Profitability Index) for increment between the projects (worth 1 point) 4. Which is the preferred project? (worth 1 point)

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