Explain benefit-cost ratio on incremetal investment

Reference no: EM13181343

The government is considering undertaking one of the four projects A1, A2, A3, A4. These projects are mutually exclusive, and the estimated present values of their costs and of their benefits are shown in millions of dollars as follows:

All of the projects hav ethe same duration. Assuming that there is no do-nothing alternative, which alternative would you select? Justify your choice by using a benefit-cost ratio on incremetal investment.

Reference no: EM13181343

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