Find the benefit-cost ratio for each alternative

Reference no: EM13181330

The federal government is planning a hydroelectic project cor a river basin. In addition to producing electric power, this project will provide flood control, irrigation, and recreational benefits. The estimated benefits and costs expected to be derived from the three alternatives under consideration are listed as follows:

The interest rate is 10%, and the life of each project is estimated to be 50 years.

a) Find the benefit-cost ratio for each alternative.

b) Select the best alternative, according to BC(i).

Reference no: EM13181330

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