Question: Use the incremental benefit to cost method to determine which of the following mutually exclusive sites is best for an investment. Use an interest rate

Use the incremental benefit to cost method to determine which of

Use the incremental benefit to cost method to determine which of the following mutually exclusive sites is best for an investment. Use an interest rate of 2% per year, compounded yearly. Cash flows shown are in $millions. Site A Site B Site C Initial cost 50 90 200 Annual maintenance cost 3 4 6 Annual benefits 20 29 61 Annual disbenefits 0.5 1.5 2.1

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