Two projects are under consideration. Both projects have a l…
Two projects are under consideration. Both projects have a life of 50 years. Estimates are given below. Use an annual interest rate of 10% for your analysis. Project A Project B Initial Investment $15,000 $10,000 Present Worth of Benefits $32,200 $21,800 Present Worth of O&M Costs $3,970 $1,980 (Round ratios to 2 decimal places) What is the Benefit-Cost ratio for Project A? What is the Benefit-Cost ratio for Project B? Based on a Benefit-Cost analysis, which Project should be selected, A or B?