Which system has the greatest b-c ratio

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Question: A new storm drainage system must be constructed right away to reduce periodic flooding that occurs in a city that is in a valley. Five mutually exclusive designs have been proposed, and their present worth (in thousands of dollars) of costs and benefits are the following.

a. Which system has the greatest B-C ratio?

b. Which system has the largest incremental B-C ratio (based on differences between alternatives)?

c. Which system should be chosen?

System
                               1                      2                  3                           4                            5

PW of                    $1,000             $4,000                 $4,000                   $10,000                $12,000

costs PW of              8,000              8,000                  14,000                    16,000                  24,000
benefits

Reference no: EM131506974

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