Use incremental benefit-cost ratios or present worth

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Reference no: EM132042904

Consider three investment projects, 1, 2, and 3. Each project has the same service life, and the benefits (B), investment (I), and costs (C') are given in present-worth dollars below:

Project 1: B = $25,000; I = $14,000; C' = $4,000

Project 2: B = $27,000; I = $11,000; C' = $9,000

Project 3: B = $11,000; I = $5,000; C' = $3,000 If the three projects are mutually exclusive, which project would be the best alternative?

You can use incremental benefit-cost ratios or present worth calculations.

Reference no: EM132042904

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